Daily Pivots: (S1) 110.40; (P) 110.60; (R1) 110.93; More…
Intraday bias in USD/JPY stays mildly on the upside this week. Consolidation pattern from 111.65 could have completed already. Firm break of 110.79 resistance will target a test on 111.65 high. On the downside, however, below 110.30 minor support will mix up the near term outlook and turn bias neutral again.
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. Nevertheless, strong break of 111.71 resistance will confirm completion of the corrective decline from 118.65 (2016 high). Further rise should then be seen to 114.54 and then 118.65 resistance.
