Daily Pivots: (S1) 110.37; (P) 110.49; (R1) 110.69; More…
USD/JPY’s rally continues today and hits as high as 110.67 so far. The break of 110.58 resistance should confirm that corrective fall from 111.65 has completed with three waves down to 108.71. Intraday bias stays on the upside for retesting 111.65 high. On the downside, though, below 110.01 minor support will mix up the near term outlook and turn intraday bias neutral first.
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. Nevertheless, strong break of 111.71 resistance will confirm completion of the corrective decline from 118.65 (2016 high). Further rise should then be seen to 114.54 and then 118.65 resistance.
