Daily Pivots: (S1) 108.29; (P) 108.47; (R1) 108.76; More…
USD/JPY is still staying in range below 109.28 and intraday bias remains neutral. We’re still favoring the case of short term topping at 109.28, and expect another fall. On the downside, break of 107.88 will target 106.48 support. Break will confirm completion of whole rebound from 104.45 and target retest of this low. However, decisive break of 109.31 will be an early sign of medium term reversal and target 112.40 resistance next.
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.
