The dollar holds in red against yen for the second consecutive day and extended pullback on Thursday to new 1 ½ week low at 109.33.
The greenback came under pressure after markets saw minutes of Fed’s last meeting as more dovish than expected.
The minutes indicated that another rate hike could be expected if the US economic outlook remains positive, but eased expectation that the Fed would accelerate the pace of rate hikes.
Another factor that pressured the greenback were President Trump’s threats of imposing new tariffs on imported cars as well as doubts about meeting with North Korea’s leader.
Close below 200SMA (former pivotal barrier) was negative signal, as bearish extension on Thursday broke below 20SMA (109.82) and pressures rising 30SMA (109.21), loss of which would expose strong support at 108.81 (Fibo 38.2% of 104.63/111.39) and 108.64 (04 May trough).
Weakening momentum supports the notion along with daily cloud twist (107.20) which could attract for further weakness.
Broken 200SMA now acts as strong barrier (110.17), followed by broken trendline (110.42), which is expected to cap upticks and keep fresh bears in play.
Res: 109.82, 110.17, 110.27, 110.42
Sup: 109.21, 108.81, 108.64, 108.30
