Daily Pivots: (S1) 108.32; (P) 108.65; (R1) 108.95; More…
Intraday bias in USD/JPY is neutral for the moment but risk stays on the downside with 109.68 resistance intact. Break of 107.47 will resume the decline from 110.95 to 100% projection of 110.95 to 107.47 from 109.68 at 106.20. However, break of 109.68 will resume the rebound from 107.47 to retest 110.95 instead.
In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. We’d monitor the structure of the fall from 110.95, to assess whether it’s just correction to rise from 102.58 to 110.95, or a leg of a range pattern between 101.18 and 111.71, or starting another leg of the long term down trend.
