Daily Pivots: (S1) 109.15; (P) 109.35; (R1) 109.56; More…
USD/JPY recovers mildly today after drawing support from 4 hour 55 EMA. But it’s staying in range below 110.02 short term top and intraday bias remains neutral. More consolidation could be seen with risk of another fall. Still, downside should be contained by 38.2% retracement of 104.62 to 110.02 at 107.95 to bring rally resumption. On the upside, break of 110.02 will resume the rise from 104.62 to 61.8% retracement of 114.73 to 104.62 at 110.86 next.
In the bigger picture, corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Rise from 104.62 is possibly resuming the up trend from 98.97 (2016 low). This will be the preferred case as long as 38.2s% retracement of 104.62 to 110.02 at 107.95 holds. Decisive break of 114.73 resistance will confirm our view and target 118.65 and above.
