Daily Pivots: (S1) 112.76; (P) 113.27; (R1) 113.62; More…
USD/JPY’s decline accelerates to as low as 111.58. 112.08 cluster support (38.2% retracement of 108.12 to 114.36 at 111.97) was taken out without hesitation. Intraday bias remains on the downside and deeper fall would be seen to 61.8% retracement at 110.50. The development also dampen the bullish case that correction from 118.65 has completed at 108.12. We’ll asses that part of the outlook later. For now, above 112.51 minor resistance will turn bias neutral and bring consolidations first.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. It’s uncertain whether it’s completed yet. But in case of another fall, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77 to bring rebound. Meanwhile, break of 115.49 resistance will extend the rise from 98.97 to retest 125.85. Overall, rise from 75.56 is still expected to resume later after the correction from 125.85 completes.
