Daily Pivots: (S1) 108.92; (P) 109.32; (R1) 109.93; More…
No change in USD/JPY’s outlook. Intraday bias remains neutral with focus on 109.82 minor resistance. Break there will indicate completion of the pull back from 113.39. And that will revive the bullish case that rise from 104.62 is still in progress. Retest of 111.39 should be seen first. On the downside, though, break of 108.10 will extend the fall from 108.10 to 61.8% retracement of 104.62 to 111.39 at 107.20 instead.
In the bigger picture, at this point w;’re slightly favoring the case that corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Above 111.39 will affirm this week and target 114.73 for confirmation. However, it should be noted that USD?JPY is bounded in medium term falling channel from 118.65 (2016 high). Sustained break of 61.8% retracement of 104.62 to 111.39 at 107.20 will likely resume the fall from 118.65 through 104.62 low.
