Daily Pivots: (S1) 109.46; (P) 109.71; (R1) 110.10; More…
USD/JPY’s recovery from 109.02 was limited by 4 hour 55 EMA and 110.03 minor resistance. Intraday bias remains neutral first and recent fall is expected to resume sooner rather than later. On the downside, break of 109.02 will resume the fall from 112.40 to retest 104.69 low. Nevertheless, break of 110.04 minor resistance will indicate short term bottom. Lengthier consolidation could then be seen before another decline.
In the bigger picture, USD/JPY is staying inside falling channel from 118.65. Currently development suggests that rebound from 104.69 is only a corrective move. And fall from 118.65 is not completed yet. Decisive break of 104.69 will extend the down trend towards 98.97 support (2016 low). For now, we’d expect strong support above there to bring rebound.
