Daily Pivots: (S1) 109.18; (P) 109.48; (R1) 109.95; More…
USD/JPY’s rebound from 108.72 extends to as high as 110.78 so far. The break of 110.61 support turned resistance argues that decline form 114.49 is already completed at 108.72. Intraday bias is turned back to the upside for 112.18 resistance first. Break there will target 114.49 key near term resistance again. On the downside, break of 108.79 minor support will turn focus back to 108.72 instead.
In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85. If fall from 118.65 extends lower, downside should be contained by 61.8% retracement of 98.97 to 118.65 at 106.48 and bring rebound.
