The pair came under increased pressure and fell sharply on Thursday, driven by fresh dollar’s sell-off. Bearish acceleration penetrated daily cloud after descending cloud top acted as solid support and limited downside attempts in past few sessions. Fresh bears dipped to 112.66, finding temporary footstep just ahead of important Fibo support at 112.64 (Fibo 61.8% of 112.02/113.63 upleg), with recovery attempts facing strong barrier at 112.83 (broken daily Tenkan-sen / cloud top). Increasing bearish outlook sees risk of further weakness on sustained break below 112.64, as daily cloud twists next week and attracts. Extension below 112.64 pivot would look for 112.29 (daily Kijun-sen) and key near-term support at 112.00 (15 Dec low) loss of which would generate strong bearish signal.
Res: 112.83, 113.02, 113.26, 113.38
Sup: 112.64, 112.40, 112.29, 112.00
