Daily Pivots: (S1) 111.40; (P) 112.14; (R1) 112.89; More…
Breach of 112.8y suggests that USD/JPY’s rebound from 110.83 is resuming. More importantly, pull back from 114.73 is likely completed. Intraday bias is back on the upside for retesting 114.73 key resistance. Decisive break there will extend the rally from 107.31 to retest 118.65 high. In case of another fall, we’ll look for bottoming again below 61.8% retracement of 107.31 to 114.73 at 110.14.
In the bigger picture, we’re holding on to the view that correction from 118.65 is completed a 107.31. And medium term rise from 98.97 (2016 low) is resuming. Sustained break of 114.73 should affirm our view and send USD/JPY through 118.65. However, break of 107.31 will dampen this will and extend the medium term fall back to 98.97 low.
