Daily Pivots: (S1) 111.54; (P) 111.74; (R1) 112.02; More…
USD/JPY was rejected from 4 hour 55 EMA but it’s staying above 110.85 minor support for the moment. Intraday bias remains neutral first. Rise from 110.23 is seen as a correction and the larger fall is expected to resume later. On the downside, below 110.85 minor support will turn bias to the downside to extend the fall from 114.36 to 108.12 low. Break there will resume the whole decline from 118.65. In that case, we’ll look for bottoming signal again at 61.8% retracement of 98.97 to 118.65 at 106.48.
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. Overall, rise from 75.56 is still expected to resume later after the correction from 125.85 completes.
