The pair holds firm tone on Wednesday and consolidating under fresh over three-month high 114.09, posted on Monday.
Tuesday’s strong rally reversed losses of the previous day and generated bullish signal on formation of bullish engulfing pattern.
Yen’s weakness is boosted by strong rise of Nikkei index which moves in uninterrupted steep ascend.
Bullish techs are supportive for further advance and test of key barriers at 114.33 (Fibo 61.8% of 118.66/107.31 descend) and 114.36/49 (11 May / 11 July former tops), break of which would generate strong bullish signals.
Caution on overbought slow stochastic on daily chart and RSI showing hesitation ahead of overbought zone boundary, which may keep the pair in extended consolidation before bulls resume.
Higher base on Mon/Tue at 113.24 should ideally contain dips and keep intact next strong support and pivotal point at 112.87 (rising 10SMA / sideways-moving Tenkan-sen).
Res: 114.09, 114.33, 114.50, 115.00
Sup: 113.73, 113.48,113.24, 112.87
