Daily Pivots: (S1) 110.01; (P) 110.18; (R1) 110.36; More…
USD/JPY’s break of 110.33 resistance argues that correction from 111.65 has completed at 109.50 already. Intraday bias is back on the upside for retesting 111.65 high. On the downside, though, break of 110.00 minor support will turn bias back to the downside for 109.05. Break will target 38.2% retracement of 102.58 to 111.65 at 108.18.
In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. The pattern from 101.18 could still extend with another falling leg. Sustained trading below 55 day EMA will bring deeper fall to 107.47 support and below. For now, outlook won’t turn bullish as long as 111.71 resistance holds, even in case of strong rebound.
