Daily Pivots: (S1) 107.52; (P) 107.84; (R1) 108.19; More…
Intraday bias in USD/JPY remains mildly on the downside at this point. Decline from 110.95 would continue towards 61.8% retracement of 102.58 to 110.95 at 105.77. On the upside, break of 108.53 minor resistance is needed to indicate short term bottoming. Otherwise, deeper fall will remain in favor in case of recovery.
In the bigger picture, 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.
