Daily Pivots: (S1) 109.90; (P) 110.10; (R1) 110.32; More…
USD/PY dips further to 109.60 so far today and intraday bias stays on the downside. Sustained break of 109.71 key support will confirm completion of rebound from 104.69 at 112.40 on bearish divergence condition in daily MACD. Deeper decline should then be seen back to retest 104.69 low. On the upside, though, rebound from current level and break of 110.28 minor resistance will mix up near term outlook. Intraday bias will be turned neutral in this case first.
In the bigger picture, USD/JPY is staying inside falling channel from 118.65. Thus, there is no confirmation of trend reversal yet. Sustained break of 109.71 will argue that rebound from 104.69 is completed. And the down trend from 118.65 is still in progress. But at this stage, in case of break of 104.69, we’d expect strong support above 98.9 (2016 low) to contain downside an bring rebound.
