Daily Pivots: (S1) 135.61; (P) 136.49; (R1) 137.04; More…
USD/JPY’s break of 135.35 support indicates short term topping at 137.90, on bearish divergence condition in 4 hour MACD. Intraday bias is back on the downside for 31.8% retracement of 127.20 to 137.90 at 133.81. Some support could be seen there to bring rebound. But near term risk will now stay on the downside as long as 137.90 resistance holds.
In the bigger picture, the break of 38.2% retracement of 151.93 to 127.20 at 136.64 suggests that whole down trend from 151.93 has completed at 127.20 already. Tentatively, rise from 127.20 is seen as the second leg the medium term pattern from 151.93. Further rally is expected to 61.8% retracement at 142.48. This will now remain the favored case as long as 55 day EMA (now at 134.10) holds.
