The pair remains firmly in red following Tuesday’s sharp fall (the biggest one-day fall since 15 Mar) and consolidating above fresh five-month low at 109.33, hit on early Wednesday’s extension lower.
Long red candle that was formed on Tuesday is expected to heavily weigh on the market, as strong risk-off sentiment on rising geopolitical tensions, keeps yen well supported.
Eventual break below strong 110.00 support has boosted bears to continue larger bear-leg from 115.49, which is also the third wave of five-wave cycle from 118.65, towards its FE100% at 108.23.
Broken 110.00 support zone now acts as initial resistance, ahead of falling daily Tenkan-sen at 110.75.
Res: 109.73, 110.00, 110.75, 110.90
Sup: 109.33, 109.00, 108.50, 108.23
