Daily Pivots: (S1) 107.75; (P) 107.98; (R1) 108.31; More…
USD/JPY is staying in consolidation above 107.47 temporary low and intraday bias remains neutral. Further fall is expected with 108.53 minor resistance intact. Break of 107.47 will resume the decline from 110.95 to 61.8% retracement of 102.58 to 110.95 at 105.77. On the upside, though, break of 108.53 will indicate short term bottoming. Intraday bias will be back to the upside for 108.99/109.95 resistance zone.
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.
