Strong indecision, signaled by Thursday’s long-legged Doji candle extends on Friday. Yen received modest support from Japan’s data overnight but gains were limited, with near-term price action hovering around daily cloud top (111.23), near which Thursday’s trading opened and closed.
Recovery action on Thursday, following Wednesday’s sharp fall, was capped by descending daily Tenkan-sen, which currently marks strong resistance at 111.65, reinforced by the base of falling 4-hr cloud.
Near-term outlook is expected to remain biased lower while the latter caps and guards key barrier at 112.10 (Fibo 38.2% of 114.49/110.62 downleg / 200SMA), break of which will be bullish.
Weekly low at 110.62 and daily cloud base at 110.38 mark key supports, break of which is needed to spark fresh downside action, on eventual close below cracked 110.97 support (Fibo 61.8% of 108.80/114.49 rally).
US GDP data are expected to provide more clues about near-term direction.
Res: 111.23; 111.32; 111.65; 112.10
Sup: 110.87; 110.77; 110.62; 110.38
