Daily Pivots: (S1) 110.89; (P) 111.24; (R1) 111.49; More…
USD/JPY’s fall from 111.82 is still in progress and intraday bias remains on the downside. Such decline is seen as the third leg of consolidation pattern from 112.13. Deeper decline would be seen to 109.71 and below. But downside should be contained by 104.69 to 112.13 at 109.28 to bring rebound. On the upside, above 111.28 minor resistance will turn intraday bias back to the upside for 112.13 resistance. 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.
