Daily Pivots: (S1) 110.41; (P) 110.61; (R1) 110.83; More…
USD/JPY’s break of 110.41 support argues that rise from 107.47 has completed at 111.65, after rejection by 111.71 key resistance. Intraday bias is turned back to the downside for 55 day EMA (now at 109.79) first. Sustained break there will suggest that it’s at least correcting the whole rise from 102.58, and targets 38.2% retracement of 102.58 to 111.65 at 108.18. For now, risk will be mildly on the downside as long as 111.65 resistance holds, in case of recovery.
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 long 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 back towards 102.58 support.
