Daily Pivots: (S1) 109.85; (P) 110.44; (R1) 110.82; More…
At this point, USD/JPY still cannot sustain above 110.66 resistance yet. Intraday bias remains neutral first. Decisive break of 110.66 will confirm short term bottoming and turn bias back to the upside for 114.49 resistance. However, break of 109.29 will retain bearishness and turn bias back to the downside for 107.31.
In the bigger picture, rise from 98.97 (2016 low) is now seen as the second leg of the corrective pattern from 125.85 (2015 high). It’s unclear whether this this second leg has completed at 118.65 or not. But medium term outlook will be mildly bearish as long as 114.49 resistance holds. And, there is prospect of breaking 98.97 ahead. Meanwhile, break of 114.49 will bring retest of 125.85 high. But even in that case, we don’t expect a break there on first attempt.
