Daily Pivots: (S1) 109.96; (P) 110.57; (R1) 110.88; More…
USD/JPY’s decline continues to as low as 109.38 so far. Break of lower channel support suggests downside acceleration. Intraday bias remains on the downside for 107.31 low. On the upside, break of 110.18 support turned resistance will be the first sign of near term reversal and will turn bias back to the upside for 111.47 resistance.
In the bigger picture, we’re holding on to the view that correction from 118.65 is completed at 107.31. And medium term rise from 98.97 (2016 low) is going to resume soon. Sustained break of 114.73 should affirm our view and send USD/JPY through 118.65. However, break of 107.31 will dampen this view and extend the medium term fall back to 98.97 low.
