Daily Pivots: (S1) 109.71; (P) 109.97; (R1) 110.23; More…
With 4 hour MACD crossed above signal line, intraday bias in USD/JPY is turned neutral for some consolidation above 109.71 temporary low. Further decline is expected as long as 110.95 minor resistance holds. Below 109.71 will target 38.2% retracement of 104.69 to 112.13 at 109.28. Break of 109.28 will target 61.8% retracement at 107.53 next. On the upside, break of 110.95 minor resistance will turn bias back to the upside for retesting 112.13 instead.
In the bigger picture, while the rebound from 104.69 was strong, USD/JPY failed to sustain above 55 week EMA (now at 110.91), and was kept well below 114.54 resistance. Medium term outlook is turned mixed and we’ll wait for the structure of the fall from 112.13 to unveil to make an assessment later. For now, more range trading is expected between 104.69 and 112.13 first.
