Daily Pivots: (S1) 105.23; (P) 105.52; (R1) 105.75; More...

USD/JPY’s sharp decline today suggests that corrective rise from 104.18 has completed and larger fall from 111.71 is resuming. Intraday bias is back on the downside for retesting 104.18 first. Firm break there will confirm and target 61.8% projection of 109.85 to 104.18 from 106.94 at 103.43 next. On the downside, though, above 105.81 minor resistance will dampen this bearish view and turn intraday bias neutral again first.

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In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). Hence, there is no clear indication of trend reversal yet. The down trend could still extend through 101.18 low. However, sustained break of 112.22 should confirm completion of the down trend and turn outlook bullish for 118.65 and above.

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