Daily Pivots: (S1) 108.29; (P) 108.54; (R1) 108.99; More…
USD/JPY’s break of 108.53 minor resistance suggests short term bottoming at 107.47. The notable support from 55 day EMA revives some near term bullishness. Intraday bias is back on the upside for 109.95 resistance. Break there will bring retest of 110.95 high. On the downside, break of 107.47 will extend the fall to 61.8% retracement of 102.58 to 110.95 at 105.77.
In the bigger picture, rise from 102.58 might have completed at 110.95, as the third leg of the pattern from 101.18 low. Medium term outlook is neutral first, as the pair could have turned into sideway trading between 101.18/111.71. We’d look at the structure and momentum of the fall from 110.95 to gauge the chance of upside breakout at a later stage.
