Daily Pivots: (S1) 111.49; (P) 111.70; (R1) 111.84; More…
USD/JPY’s fall from 112.40 resumes after brief recovery and intraday bias is back on the downside for 110.84 support. Break of 110.84 will add to the case of reversal and target 109.71 support and below. In any case, break of 112.40 is needed to confirm rise resumption. Otherwise, risk will stay mildly on the downside in case of recovery.
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.
