Daily Pivots: (S1) 107.87; (P) 108.01; (R1) 108.19; More…
USD/JPY’s decline from 110.95 extends lower today and breaks 38.2% retracement of 102.58 to 110.95 at 107.75. Intraday bias is now on the downside for deeper decline to 61.8% retracement at 105.77. On the upside, break of 108.53 minor resistance is needed to indicate short term bottoming. Otherwise, deeper decline will remain in favor in case of recovery.
In the bigger picture, current development suggests that rise from 102.58 might have completed at 110.95, as the third leg of the pattern from 101.18 low. Medium term outlook is neutral first, as the pair could have turned into sideway trading between 101.18/111.71. We’d look at the structure and momentum of the fall from 110.95 to gauge the chance of upside breakout at a later stage.
