Daily Pivots: (S1) 110.53; (P) 110.81; (R1) 111.26; More…
USD/JPY rebounds notably in early US session but it’s staying in range of 110.25/111.23, intraday bias remains neutral first. On the upside, decisive break of 111.23 will firstly confirm resumption of whole rebound from 104.69. Secondly, that will indicate strong support from 55 day EMA, and likely firm break of 61.8% retracement of 114.54 to 104.69 at 110.77 too. In that case, further rise should be seen back to 114.54 key resistance next. On the downside, though, break of 110.25 minor support will suggest rejection by 110.77. And in that case, the rebound from 104.69 has likely completed. Intraday bias will be turned back to the downside for 108.49 support for confirmation.
In the bigger picture, while the rebound from 104.69 was stronger than expected, it’s struggle to get rid of 55 day EMA completely. Outlook is turned mixed first. On the downside, break of 108.49 support will revive that case that such rebound was a correction. And, larger down trend is still in progress for another low below 104.62. But sustained trading above 55 day EMA will turn focus to 114.54. Decisive break there will confirmation completion of the decline from 118.65 (2016 high).
