Daily Pivots: (S1) 108.91; (P) 109.71; (R1) 110.20; More…
USD/JPY’s recovery from 109.11 extends higher but it’s kept well below 111.70 resistance. Intraday bias remains neutral at this point. Another fall is still expected as long as 111.70 resistance holds. Below 109.11 will target 108.12 low first. Break will extend whole decline from 118.65 to 61.8% retracement of 98.97 to 118.65 at 106.48. As such decline is seen as a correction, we’ll looking for bottoming signal around 106.48. Meanwhile, break of 110.70 will suggest near term reversal and turn bias back to the upside for 114.36 resistance instead.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. It’s uncertain whether it’s completed yet. But in case of another fall, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77 to bring rebound. Overall, rise from 75.56 is still expected to resume later after the correction from 125.85 completes.
