Daily Pivots: (S1) 108.51; (P) 108.63; (R1) 108.76; More…
Outlook in USD/JPY remains unchanged and intraday bias stays neutral for consolidation below 108.93. Another retreat could not be ruled out, but downside should be contained by 55 day EMA (now at 107.81). On the upside, 108.93 will target 109.31 key resistance. 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 no 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.
