Daily Pivots: (S1) 111.17; (P) 111.40; (R1) 111.78; More…
Intraday bias in USD/JPY is turned neutral with current retreat, and with 4 hour MACD crossed below signal line. But further rise is still expected with 110.41 support intact. On the upside, sustained break of 111.71 key resistance will carry larger bullish implication. Next target is 61.8% projection of 102.58 to 110.95 from 107.47 at 112.64.
In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. Though, as notable support was seen from 55 day EMA, rise from 102.58 is mildly in favor to extend higher. 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 55 day EMA 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.
