Daily Pivots: (S1) 106.31; (P) 107.03; (R1) 107.48; More…
Intraday bias in USD/JPY remains neutral as consolidation from 105.54 is extending. Outlook remains bearish with 108.27 resistance intact and deeper fall is expected. Break of 105.54 will extend the larger fall from 118.65 and target 100% projection of 118.65 to 108.12 from 114.73 at 104.20 next. However, break of 107.72 will be the first sign of near term reversal and will target 110.47 resistance for confirmation.
In the bigger picture, current development argues that the corrective pattern from 118.65 is extending. The solid break of 61.8% retracement of 98.97 to 118.65 at 106.48. now suggests that the pattern from 125.85 high is possibly extending. Deeper fall could be seen through 98.97 key support (2016 low). This bearish case will now be favored as long as 110.47 resistance holds.
