Daily Pivots: (S1) 109.24; (P) 109.80; (R1) 110.16; More…

USD/JPY’s break of 109.81 minor support suggests that corrective recovery from 109.02 has completed at 110.67 already, ahead of 55 day EMA. Intraday bias is turned back to the downside for 109.02 first. Break will resume the decline from 112.40 to retest 104.69 low. In any case, near term outlook will stay bearish as long as 55 day EMA (now at 110.73) holds.

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In the bigger picture, USD/JPY is staying inside falling channel from 118.65. Currently development suggests that rebound from 104.69 is only a corrective move. And fall from 118.65 is not completed yet. Decisive break of 104.69 will extend the down trend towards 98.97 support (2016 low). For now, we’d expect strong support above there to bring rebound.

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