Daily Pivots: (S1) 110.34; (P) 110.49; (R1) 110.65; More…
Intraday bias in USD/JPY remains on the upside at this point. Sustained trading above 61.8% retracement of 114.54 to 104.69 at 110.77 will dampen our original bearish view. Next target will be 114.54 resistance. On the downside, break of 110.16 minor support will indicate rejection by 110.77 and turn bias to the downside for 108.49 support next.
In the bigger picture, while the rebound from 104.69 is strong, there is no change in the view that it’s a corrective move. That is, fall from 114.54, as part of the decline from 118.65 (2016 high), is not completed yet. Break of 104.62 will target 100% projection of 118.65 to 104.62 from 114.54 at 100.51, which is close to 100 psychological level. Nevertheless, sustained trading above 55 day EMA (now at 110.41) will dampen this bearish view and turn focus back to 114.54 resistance instead.
