Daily Pivots: (S1) 109.95; (P) 110.21; (R1) 110.49; More…
USD/JPY is in mild recovery but risk stays on the downside as long as 110.81 holds. Choppy rise from 107.47 could have completed after rejection by 110.95 resistance. Further fall is in favor to 109.17 support. Break there will confirm and target 107.47 again.
In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. On the upside, decisive break of 111.71/112.22 resistance will suggest medium term bullish reversal. Rise from 101.18 could then target 118.65 resistance (Dec 2016) and above. However, sustained break of 107.47 support would revive some medium term bearishness, and open up deep fall to 61.8% retracement of 102.58 to 110.95 at 105.77 and below.
