Daily Pivots: (S1) 110.39; (P) 110.67; (R1) 110.96; More…
Intraday bias in USD/JPY stays mildly on the upside. Current rebound from 108.10 should target a test on 111.39 high. Break there will also resume the rise from 104.62 and target 114.73 key resistance. However, below 110.05 will turn bias to the downside for 109.36 to extend the corrective pattern from 111.39.
In the bigger picture, at this point, we’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 view 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.
