Daily Pivots: (S1) 110.73; (P) 111.40; (R1) 111.79; More…

USD/JPY’s fall from 114.49 continues today and reaches as low as 110.61 so far. Intraday bias remains on the downside for 108.81 support. As noted before, whole correction from 118.65 is still in progress. Break of 108.81 will confirm and target target 61.8% retracement of 98.97 to 118.65 at 106.48. On the upside, break of 111.47 minor resistance will turn bias neutral and bring recovery before staging another decline.

In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85. If fall from 118.65 extends lower, down side should be contained by 61.8% retracement of 98.97 to 118.65 at 106.48 and bring rebound.

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