Momentum has turned , we see scope for test of 114 levels.
113.97, 23.6% Fib of 98.78 to 118.66 rally is next immediate support, below which the pair finds next support at 113.59 (50-DMA).
Break below 50-DMA could see drag till 111 levels.
On the flipside, invalidation only on close above 20-DMA at 116.85.
The US dollar which has been on the back-foot, collapsed overnight on the back of Trump's lack of conviction.
Markets which were looking for something concrete in respect to Trump's policies, were left largely disappointed.
Data released earlier on Thursday showed robust bank lending, current account figures in Japan which fuelled further downside in the pair.
Japan’s November current account NSA decreased to 1415.5 bln JPY (forecast 1500.0 bln jpy) vs previous 1719.9 bln JPY, while December bank lending y/y increased to 2.6 % vs previous 2.4 %
Support levels - 114.25 (Jan 11 low), 114, 113.97 (23.6% Fib of 98.78 to 118.66 rally), 113.59 (50-DMA)
Resistance levels - 115, 115.45 ( ), 115.76 (5-DMA), 116
Good to go long on rallies around 114.80/90, SL: 115.45, TP: 114.25/ 114/ 113.60