Daily Pivots: (S1) 110.43; (P) 110.69; (R1) 111.09; More…
USD/JPY’s decline continues and reaches as low as 110.00 so far. Break of 110.35 support indicates that rebound from 104.69 has completed at 112.13 already. Intraday bias is now on the downside for 38.2% retracement of 104.69 to 112.13 at 109.28 first. Break will target 61.8% retracement at 107.53 next. On the upside, break of 110.95 minor resistance will turn bias back to the upside for retesting 112.13 instead.
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, sustained break of 110.35 will mix up the medium term outlook again and turn focus back to 104.69 low.
