The pair remains within tight range in early Europe and looking for fresh direction signals on news from Syria.
Falling thick daily cloud continues to cap upside attempts and weighs, but the downside was so far contained by rising 10SMA (106.75) and limited as immediate threats of US attack eased, reducing safe-haven demand.
Near-term action is holding within triangular narrowing range with key points at 106.75 (10SMA) and 107.16 (daily cloud base).
Daily MA’s (10/20/30) are in bullish setup, with strong momentum studies keeping the pair supported.
However, geopolitical tensions are expected to be the main driver. If the situation escalates, yen is expected to strengthen significantly on strong safe-haven demand, while easing tensions would lift the greenback, but the pair may struggle to penetrate thick daily cloud.
Res: 106.70, 107.05, 107.16, 107.50
Sup: 106.75, 106.40, 106.31, 106.00
