Daily Pivots: (S1) 109.91; (P) 110.13; (R1) 110.54; More…
Intraday bias in USD/JPY remains neutral first. On the downside, break of 109.70 support will revive the case that consolidation pattern from 110.95 has started the third leg. Intraday bias will be turned back to the downside for 109.17 support first. On the upside, decisive break of 110.95 will confirm resumption of larger rise from 102.58.
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.
