Daily Pivots: (S1) 109.77; (P) 110.05; (R1) 110.38; More…
USD/JPY’s fall from 111.65 resumes by breaking through 109.52 support and reaches as low as 109.05 so far. Intraday bias is back on the downside. Current development suggests that such decline is at least correcting the rise from 102..58. Deeper fall would be seen to 38.2% retracement of 102.58 to 111.65 at 108.18. On the upside, break of 110.33 resistance is needed to indicate short term topping. Otherwise, outlook will stay bearish.
In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. Sustained trading below 55 day EMA would argue that the pattern from 101.18 is starting another falling leg, that could head back to 102.58 support and below. For now, outlook won’t turn bullish as long as 111.71 resistance holds, even in case of strong rebound.
