Daily Pivots: (S1) 111.27; (P) 111.51; (R1) 111.75; More…
USD/JPY’s break of 111.18 support suggests that rebound from 109.71 has completed at 111.82. Also, the consolidation pattern from 112.13 is starting the third leg. Intraday bias is back on the downside for 109.71 and possibly below. But downside should be contained by 104.69 to 112.13 at 109.28 to bring rebound. On the upside, decisive break of 112.13 will resume whole rally from 104.69 and target 114.54 resistance next.
In the bigger picture, medium term outlook in USD/JPY remains a bit mixed as it’s staying inside falling channel from 118.65, but there are signs of bullish reversal. On the upside, break of 114.54 resistance will revive the case the corrective fall from 118.65 has completed with three waves down to 104.69. And whole rise from 98.97 (2016 low) is resuming for 118.65 and above. But before that, outlook stays neutral first.
