Daily Pivots: (S1) 108.46; (P) 108.74; (R1) 109.09; More…
USD/JPY is staying in consolidation above 108.10 temporary low and intraday bias remains neutral first. As long as 109.82 minor resistance holds, near term outlook remains mildly bearish. 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. Nonetheless, break of 109.82 will turn focus back to 111.39 resistance instead.
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.
