Daily Pivots: (S1) 109.47; (P) 109.72; (R1) 110.10; More…
Intraday bias in USD/JPY is turned neutral as it recovers after hitting 109.05. But further fall is expected as long as 110.33 resistance intact. On the downside, break of 109.05 will target 38.2% retracement of 102.58 to 111.65 at 108.18. However, on the upside, break of 110.33 will argue that the choppy fall from 111.65 has completed, and turn bias back to the upside for retesting this high.
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.
