Daily Pivots: (S1) 134.32; (P) 134.85; (R1) 135.20; More…
Intraday bias in USD/JPY remains on the upside for 38.2% retracement of 151.93 to 127.20 at 136.64. Strong resistance could be seen there to complete the rebound from 127.20. Break of 134.04 minor support will turn bias back to the downside for 55 day EMA (now at 133.44) and below. However, sustained trading above 136.64 will indicate that fall from 151.93 has completed, and bring further rally to 61.8% retracement at 142.48.
In the bigger picture, focus is now on 38.2% retracement of 151.93 to 127.20 at 136.64. Sustained break there will indicate that price actions from 151.93 medium term are merely a corrective pattern. Such development will maintain long term bullishness. Rejection by 136.64 will, on the downside, extend the fall from 151.93 to 61.8% retracement of 102.58 to 151.93 at 121.43 at a later stage.
