Daily Pivots: (S1) 109.53; (P) 109.66; (R1) 109.91; More…
USD/JPY rises sharply in early US session and immediate focus is now on 110.58 resistance. Decisive break there will suggest that fall from 111.65 has completed. Stronger rise would be seen back to retest this high. On the downside, break of 108.71 will resume the decline from 111.65 to 38.2% retracement of 102.58 to 111.65 at 108.18.
In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. Firm break of 107.47 will argue that pattern from 101.18 has started another falling leg already. Deeper decline could be seen back to 101.18/102.58 support zone. For now, outlook won’t turn bullish as long as 111.71 resistance holds, even in case of strong rebound.
