Daily Pivots: (S1) 109.35; (P) 109.46; (R1) 109.65; More…
A temporary low is likely in pace as USD/JPY recovered ahead of 109.02 low. Intraday bias is turned neutral first. But outlook remains bearish as fall from 112.40 is expected to resume sooner or later. On the downside, break of 109.02 will target 61.8% retracement of 104.69 to 112.40 at 107.63 next. On the upside, in case of stronger recovery, upside should be limited below 110.67 resistance to bring fall resumption eventually.
In the bigger picture, USD/JPY is staying inside falling channel from 118.65. Current 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.
