Daily Pivots: (S1) 108.65; (P) 109.02; (R1) 109.60; More…

Intraday bias in USD/JPY remains neutral for the moment and more consolidations could be seen. But still, in any case, outlook will remain cautiously bearish as long as 110.94 resistance holds. On the downside, decisive break of 108.12 will resume the whole corrective decline from 118.65. Next target will be 61.8% retracement of 98.97 to 118.65 at 106.48.

In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85. If fall from 118.65 extends lower, downside should be contained by 61.8% retracement of 98.97 to 118.65 at 106.48 and bring rebound.

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