Daily Pivots: (S1) 109.35; (P) 109.65; (R1) 109.85; More…
With 109.14 minor support intact, USD/JPY’s rebound from 104.69 might still extend further to 61.8% retracement of 114.54 to 104.69 at 110.77. But in that case, we’d look for topping signal above there. On the downside, break of 109.14 minor support will be the first sign of completion of the rebound. Intraday bias will then be turned back to the downside.
In the bigger picture, while the rebound from 104.69 is strong, there is no change in the view that it’s a corrective move. That is, fall from 114.54, as part of the decline from 118.65 (2016 high), is not completed yet. Break of 104.62 will target 100% projection of 118.65 to 104.62 from 114.54 at 100.51, which is close to 100 psychological level. Nevertheless, sustained trading above 55 day EMA (now at 110.82) will dampen this bearish view and turn focus back to 114.54 resistance instead.
