Daily Pivots: (S1) 110.56; (P) 111.14; (R1) 112.06; More…
A temporary low is in place at 110.23 after USD/JPY drew support from 61.8% retracement of 108.12 to 114.36 at 110.50. Intraday bias is turned neutral first. As recovery from 110.23 is corrective in structure, we’d favor more downside ahead. Below 110.23 will turn bias to the downside for 108.12 low. In that case, the whole decline from 118.65 would likely extend through 108.12 to 61.8% retracement of 98.97 to 118.65 at 106.48.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. It’s uncertain whether it’s completed yet. But in case of another fall, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77 to bring rebound. Overall, rise from 75.56 is still expected to resume later after the correction from 125.85 completes.
