Bulls took back the baton all the way up to the 108 handle, but it was a rough ride with speed bumps along the way within a wide choppy range. US stock prices were also bumpy making for uneven grounds for the US dollar and attracting safe haven flows into the yen. Adding to the pressures were pood data results for the US economy and much softer treasury yields. The yield on the benchmark 10-year note dropping to 2.56%, its lowest in almost a year.
Meanwhile, the pair has opened the channels for a run down to 104.56 as the 2018 low. "While near-term rallies are contained by the 111.38 26th October low, it will remain directly offered. Initial resistance lies at the 108.12 May 29 low and the mid- February high at 107.91. Together with the accelerated downtrend at 109.98," analysts at Commerzbank argued.