Daily Pivots: (S1) 108.47; (P) 108.78; (R1) 109.20; More…
Intraday bias in USD/JPY remains neutral as consolidation from 108.10 temporary low is still in progress. Another recovery cannot be ruled out. But upside should be limited by 109.82 resistance to bring fall resumption. Below 108.10 will target 61.8% retracement of 104.62 to 111.39 at 107.20. Break will likely resume larger decline from 118.65 for a new low below 104.62.
In the bigger picture, USD/JPY remains bounded in medium term falling channel from 118.65 (2016 high). The development. Current deeper than expected fall from 111.39 argues that fall from 118.65 is not finished. Break of 104.62 low would target 98.97 or even below. Though, break of 111.39 will revive the case that fall from 118.65 has completed and turn focus to 114.73 for confirmation.
