Daily Pivots: (S1) 127.71; (P) 128.44; (R1) 128.88; More…
USD/JPY rebounds notably but there is no confirmation of reversal yet. Intraday bias remains neutral first. On the upside, firm break of 133.61 support turned resistance will firstly confirm short term bottoming at 127.20. More importantly, whole correction from 151.93 might have completed too. Bias will then be turned back to the upside for 38.2% retracement of 151.93 to 127.20 at 136.64 first. However, break of 127.20 will resume the decline form 151.93 to 121.43 fibonacci level next.
In the bigger picture, the firm break of 55 week EMA (now at 131.59) raises the chance of medium term bearish reversal, but that’s not confirmed yet. Strong support could be seen around 61.8% retracement of 102.58 to 151.93 at 121.43 and 38.2% retracement of 38.2% retracement of 75.56 to 151.93 at 122.75 to bring rebound. But break of 134.76 resistance is needed to indicate bottoming first. Otherwise further fall will remain in favor.
