Daily Pivots: (S1) 109.65; (P) 110.24; (R1) 110.62; More….
USD/JPY recovers again after hitting 109.83. Intraday bias is turned neutral first. As long as 112.18 remains intact, outlook stays bearish for deeper fall. Below 109.83 will target 108.81 support. Break there will resume whole correction from 118.65 and target 61.8% retracement of 98.97 to 118.65 at 106.48.
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.
