Daily Pivots: (S1) 109.38; (P) 109.53; (R1) 109.65; More..
USD/JPY’s rally resumed after brief consolidations and intraday bias is back on the upside. Current rise from 104.45 is in progress for 100% projection of 104.45 to 108.47 from 106.48 at 110.50. Break will target long term channel resistance at 111.78 next. On the downside, below 109.33 minor support will turn intraday bias neutral and bring consolidations first. In this case, downside of retreat should be contained above 108.27 support to bring rise resumption.
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.
