Daily Pivots: (S1) 109.45; (P) 110.18; (R1) 110.64; More…
Intraday bias in USD/JPY remains on the downside at this point. Prior break of 110.35 support argues that rebound from 104.69 is completed at 112.13 already. Further decline should be seen to 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, while the rebound from 104.69 was strong, USD/JPY failed to sustain above 55 week EMA (now at 110.91), and was kept well below 114.54 resistance. Medium term outlook is turned mixed and we’ll wait for the structure of the fall from 112.13 to unveil to make an assessment later. For now, more range trading is expected between 104.69 and 112.13 first.
