Daily Pivots: (S1) 108.61; (P) 108.95; (R1) 109.18; More…
Intraday bias in USD/JPY is turned neutral as it retreated after failing to take out 109.31 key resistance. For now, further rise is mildly in favor as long as 108.25 minor support holds. Decisive break of 109.31 will carry larger bullish implications next target will be 100% projection of 104.45 to 108.47 from 106.48 at 110.50. On the downside, however, break of 108.25 support will indicate short term topping and turn bias back to the downside for 106.48 support next.
In the bigger picture, strong support was seen from 104.62 again. Yet, there is no confirmation of medium term reversal. Corrective decline from 118.65 (Dec. 2016) could still extend lower. But in that case, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. Meanwhile, on the upside, break of 112.40 key resistance will be a strong sign of start of medium term up trend.
