Daily Pivots: (S1) 109.65; (P) 110.24; (R1) 110.62; More….
Breach of 109.91 suggests that fall from 114.49 is resuming. Intraday bias in USD/JPY is turned back to the downside for 108.81 support. Break there will resume whole correction from 118.65 and target 61.8% retracement of 98.97 to 118.65 at 106.48. On the upside, above 111.97 will turn bias neutral again. But still, as long as 112.18 remains intact, outlook stays bearish for deeper fall.
In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85. If fall from 118.65 extends lower, down side should be contained by 61.8% retracement of 98.97 to 118.65 at 106.48 and bring rebound.
