Daily Pivots: (S1) 110.81; (P) 111.04; (R1) 111.25; More…
USD/JPY’s strong rebound and break of 111.28 minor resistance argues that pull back from 111.82 has completed at 110.84 already. Intraday bias is turned back to the upside for 111.82/112.13 resistance zone first. Firm break there will resume larger rise from 104.69. On the downside, break of 110.84 will turn bias back to the downside for 109.71, to extend the corrective pattern from 112.13.
In the bigger picture, medium term outlook in USD/JPY remains a bit mixed as it’s staying inside falling channel from 118.65, but there are signs of bullish reversal. On the upside, break of 114.54 resistance will revive the case the corrective fall from 118.65 has completed with three waves down to 104.69. And whole rise from 98.97 (2016 low) is resuming for 118.65 and above. But before that, outlook stays neutral first.
