Daily Pivots: (S1) 108.49; (P) 108.67; (R1) 108.97; More..
USD/JPY struggles to sustain above 4 hour 55 EMA so far and weakens mildly. But it’s staying inside range of 108.24/109.48 and intraday bias remains neutral so far. On the upside, break of 109.48 resistance will resume whole rise from 104.45 and target trend line resistance (now at 111.87). On the downside, break of 108.24 support will revive the case of short term reversal. Intraday bias will be turned back to the downside for 107.88 support to confirm.
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.
