Daily Pivots: (S1) 109.50; (P) 109.77; (R1) 110.07; More…
Intraday bias in USD/JPY remains mildly on the upside with 109.36 minor support intact and further rise is expected. Rebound from 108.10 should target a test on 111.39 resistance next. Break will resume the rebound from 104.62 and target a test on 114.73 key resistance level. However, on the downside, below 109.36 minor support will delay the bullish case and turn bias neutral again.
In the bigger picture, at this point , we’re slightly favoring the case that corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Above 111.39 will affirm this view and target 114.73 for confirmation. However, it should be noted that USD/JPY is bounded in medium term falling channel from 118.65 (2016 high). Sustained break of 61.8% retracement of 104.62 to 111.39 at 107.20 will likely resume the fall from 118.65 through 104.62 low.
