Daily Pivots: (S1) 111.27; (P) 111.56; (R1) 111.98; More…

Intraday bias in USD/JPY remains neutral at this point as it’s staying in range of 110.35/112.13. As long as 110.35 support holds, near term outlook remains bullish and rise from 104.69 is expected to resume. On the upside, break of 112.13 will target 114.54 resistance next. However, firm break of 110.35 should confirm near term reversal and turn outlook bearish for 108.49 support and below.

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In the bigger picture, strong rebound from 104.69 argues that decline from 118.65 (2016 high) has completed with three waves down to 104.69, after failing 104.62. More importantly, the rise from 98.97 (2016 low) could be resuming. Decisive break of 114.54 resistance will add more credence to this bullish case and target 118.65. This will now be the favored case as long as 110.35 support holds. However, firm break of 110.35 will mix up the medium term outlook again and turn focus back to 104.69 low.

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