Daily Pivots: (S1) 111.24; (P) 111.74; (R1) 112.12; More…
USD/JPY’s break of 111.65 minor support suggests short term topping on bearish divergence condition in 4 hour MACD. Intraday bias is turned back to the downside for 110.84 support first. Break will add to the case of reversal and target 109.71 support and below. On the upside, decisive break of 112.40 is needed to confirm resumption of rise from 104.69. Otherwise, risk will stay mildly on the downside.
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.
