Daily Pivots: (S1) 110.59; (P) 110.83; (R1) 111.23; More…
USD/JPY’s rally extends to as high as 111.13 so far today. The sustained break of 61.8% retracement of 114.54 to 104.69 at 110.77 dampened our bearish view. Intraday bias is remains on the upside and further rise would be seen to 114.54 resistance. On the downside, break of 110.34 is now needed to be the first sign of short term topping. Otherwise, outlook will stay mildly bullish in case of retreat.
In the bigger picture, the stronger than expected rebound from 104.69 and firm break of 55 day EMA argues that decline from 114.54 has completed at 104.69 already. Such decline is seen as a leg in the corrective pattern from 118.65, which might be finished too. Decisive break of 114.54 will confirm this case and target 118.65 and above. On the downside, break of 108.49 support will turn focus back to 104.62/9 support zone instead.
