Daily Pivots: (S1) 109.94; (P) 110.14; (R1) 110.54; More…
USD/JPY’s rebound from 109.11 extends higher today and focus is now immediately on 110.44 resistance. Firm break there will argue that consolidation pattern from 111.65 might have finally completed. Stronger rise would be seen through 110.79 to retest 111.65 high. On the downside, though, break of 109.10 will argue that larger fall from 111.65 is resuming. Deeper decline should then be seen to 108.71 support first, and then 38.2% retracement of 102.58 to 111.65 at 108.18 next.
In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. The pattern from 101.18 could still extend with another falling leg. Sustained trading below 55 day EMA will bring deeper fall to 107.47 support and below. Nevertheless, strong break of 111.71 resistance will confirm completion of the corrective decline from 118.65 (2016 high). Further rise should then be seen to 114.54 and then 118.65 resistance.
