Daily Pivots: (S1) 110.74; (P) 111.21; (R1) 111.67; More...
USD/JPY’s fall from 111.71 extends lower today but it’s staying well above 106.75 support. Intraday bias remains neutral first and further rally is still mildly in favor. Decisive break of 112.22 key resistance will carry larger bullish implication and target 114.54 resistance next. On the downside, break of 106.75 support will turn bias back to the downside for retesting 101.18 low instead.
In the bigger picture, at this point, whole decline from 118.65 (Dec 2016) continues to display a corrective look, with well channeling. There is no clear sign of completion yet. Break of 101.18 will target 98.97 (2016 low). Meanwhile, sustained break of 112.22 should confirm completion of the decline and turn outlook bullish for 118.65 and above.
