The pair is consolidating above solid support at 111.64 (daily Kijun-sen/50% of 108.80/114.49 rally) where Tuesday’s fall found footstep. Bearish acceleration also cracked a plethora of supports provided by daily MA’s (laying in 112.00/111.76 zone) but failed to close below and generate fresh bearish signal. Stronger upticks could be expected as slow stochastic is oversold on daily chart and reversing higher. Falling hourly cloud (spanned between 112.37 and 112.67) weighs and should cap extended upticks, with cloud top being reinforced by 20SMA. Eventual break below 111.64 pivot would signal fresh weakness and open 110.97 support (Fibo 61.8% of 108.80/114.49 rally) while extension above 112.75 (Fibo 38.2% of 114.49/111.64 pullback) would generate bullish signal and open way for fresh recovery. BoJ policy meeting on Thursday is in focus, with central bank expected to keep policy unchanged but may tweak forecast.
Res: 112.23, 112.37, 112.67, 112.75
Sup: 111.88, 111.64, 111.13, 110.97
