Daily Pivots: (S1) 109.60; (P) 109.82; (R1) 110.18; More…
Intraday bias in USD/JPY remains neutral for consolidation above 109.47 temporary low. More sideway trading could be seen first. In case of stronger recovery, upside should be limited below 110.95 resistance to bring fall resumption. On the downside, break of 109.47 and sustained trading below 109.72 key support will confirm completion of rebound from 104.69 at 112.40 on bearish divergence condition in daily MACD. Deeper decline should then be seen back to retest 104.69 low.
In the bigger picture, USD/JPY is staying inside falling channel from 118.65. Thus, there is no confirmation of trend reversal yet. Sustained break of 109.71 will argue that rebound from 104.69 is completed. And the down trend from 118.65 is still in progress. But at this stage, in case of break of 104.69, we’d expect strong support above 98.9 (2016 low) to contain downside an bring rebound.
