Daily Pivots: (S1) 109.53; (P) 109.73; (R1) 109.93; More..
USD/JPY’s decline from 114.45 resumed and reaches as low as 109.37 so far. The break of 109.76 support also carries larger bearish implications. Intraday bias is now on the downside for 61.8% retracement of 104.62 to 114.54 at 118.40 first. Sustained break there will pave the way to retest 104.62 low next. On the upside, break of 111.40 resistance is needed to indicate short term bottoming. Otherwise, near term outlook will remain bearish in case of recovery.
In the bigger picture, price actions from 125.85 (2015 high) are seen as a long term corrective pattern, no change in this view. Apparently, such corrective pattern is not completed yet. Break of 109.76 support suggests that another medium term down leg has started, targeting 98.97/104.62 support zone. For now, we’d expect strong support from there to contain downside to bring rebound.
