Daily Pivots: (S1) 109.08; (P) 109.43; (R1) 109.66; More…
Intraday bias in USD/JPY remains neutral first and further decline is expected as long as 110.58 resistance holds. On the downside, break of 109.05 will resume the decline from 111.65. Next target is 38.2% retracement of 102.58 to 111.65 at 108.18. On the upside, above 109.82 minor resistance will bring stronger recovery first.
In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. The pattern from 101.18 could still extend with another falling leg. Sustained trading below 55 day EMA will bring deeper fall to 107.47 support and below. For now, outlook won’t turn bullish as long as 111.71 resistance holds, even in case of strong rebound.
