Daily Pivots: (S1) 108.11; (P) 108.32; (R1) 108.60; More…
A temporary top is in place at 108.62 with 4 hour MACD crossed below signal line. Intraday bias in USD/JPY is turned neutral first. Downside of retreat should be contained above 106.48 support to bring another rally. On the upside, break of 108.62 will target 109.31 key resistance first. Decisive break there will carry larger bullish implications next target will be 100% projection of 104.45 to 108.47 from 106.48 at 110.50.
In the bigger picture,strong support was seen from 104.62 again. Yet, there is not confirmation of medium term reversal. Corrective decline from 118.65 (Dec. 2016) could still extend lower. But in that case, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. Meanwhile, on the upside, break of 112.40 key resistance will be a strong sign of start of medium term up trend.
