Daily Pivots: (S1) 111.27; (P) 111.42; (R1) 111.65; More…
USD/JPY’s rally resumes by breaking through 111.57 temporary top, after brief consolidations. Intraday bias is back on the upside for 112.13 resistance. Decisive break of 112.13 resistance will resume whole rise from 104.69 to 114.54 key resistance next. For now, further rally will remain mildly in favor as long as 111.18 minor support holds. But break of 111.18 will turn bias back to the downside for 109.71, and possibly further to 38.2% retracement of 104.69 to 112.13 at 109.28.
In the bigger picture, while the rebound from 104.69 was strong, USD/JPY failed to sustain above 55 week EMA (now at 110.80), 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.
