Daily Pivots: (S1) 106.12; (P) 106.70; (R1) 107.16; More…
USD/JPY’s corrective trading from 105.24 continues and retreated after losing momentum ahead of 107.67 resistance. Intraday bias remains neutral as consolidation from 105.24 might extend. Also, another decline will remain in favor as long as 107.67 holds. On the downside, break of 105.24 will resume larger decline from 118.65 and target 100% projection of 118.65 to 108.12 from 114.73 at 104.20 next. On the upside, firm break of 107.67 resistance will indicate near term reversal, on bullish convergence condition in 4 hour MACD. In such case, outlook will be turned bullish for 110.47 resistance next.
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.
