The pair hit new two-month high at 107.90 on Monday in extension of three-day rally from 106.88 trough, as easing concerns over global political risks significantly reduced safe-haven-demand and kept yen under pressure.
Trading on Monday started with gap-higher opening and probe through Friday’s spike-high at 107.85 pressure psychological 108 barrier.
Bulls are on track for eventual close above 107.56 (50% retracement of 110.48/104.63 bear-leg, which repeatedly capped upside attempts in past two months) to generate fresh bullish signal.
Break above 108 handle would open pivotal barrier at 108.25 (Fibo 61.8%), break of which would signal further recovery and bring in focus targets at 109.01/31 (falling 100SMA/top of thick daily cloud).
Bullish daily techs remain supportive, however, bulls may show hesitation at 108 barrier.
Rising 10SMA which tracks the ascend since late Mar marks solid support at 107.27, which is expected to hold dips and keep bullish structure intact.
Res: 108.00, 108.25, 108.77, 109.01
Sup: 107.66, 107.56, 107.27, 106.88
