Daily Pivots: (S1) 127.13; (P) 129.35; (R1) 131.14; More…
USD/JPY is still bounded in established range despite today’s strong recovery. Intraday bias remains neutral first. On the upside, break of 131.56 minor resistance should confirm short term bottoming at 127.20. Intraday bias will be back on the up for stronger rebound to 38.2% retracement of 151.93 to 127.20 at 136.64. On the downside, though, firm break of 127.20 will resume larger fall from 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 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.
