Daily Pivots: (S1) 109.53; (P) 109.73; (R1) 109.93; More..
USD/JPY drops to as low as 108.70 so far today and intraday bias remains on the downside. Current fall from 114.54 should target 61.8% retracement of 104.62 to 114.54 at 118.40 first. Sustained break there will pave the way to retest 104.62 low next. On the upside, above 109.20 minor resistance will turn intraday bias neutral to bring consolidation. But upside of recovery should be limited by 111.37 support turned resistance to bring fall resumption.
In the bigger picture, price actions from 125.85 (2015 high) are seen as a long term corrective pattern, no change in this view. Apparently, such corrective pattern is not completed yet. Fall from 114.54 is seen as another medium term down leg, 98.97/104.62 support zone. For now, we’d expect strong support from there to contain downside to bring rebound.
