Daily Pivots: (S1) 108.21; (P) 108.54; (R1) 108.87; More..
Intraday bias in USD/JPY remains on the downside at this point. Rebound from 104.45 should have completed at 109.72. Deeper fall should be seen to 38.2% retracement of 104.45 to 109.72 at 107.70 first. Break will bring deeper fall to 106.48 cluster support (61.8% retracement at 106.46). On the upside, above 108.86 minor resistance will bring retest of 109.72 instead.
In the bigger picture, there is no confirmation of medium term reversal. Corrective decline from 118.65 (Dec. 2016) could still extend lower. But in that case, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. Meanwhile, on the upside, break of 112.40 key resistance will be a strong sign of start of medium term up trend.
