Daily Pivots: (S1) 111.96; (P) 112.30; (R1) 112.86; More…
USD/JPY’s rebound from 110.83 extended further and focus is now on 112.71 resistance. Sustained break there should confirm completion of pull back from 114.73. In that case, intraday bias will be turned back to the upside for retesting 114.73 resistance. On the downside, below 111.66 minor support will turn bias to the downside and likely resume fall from 112.71 through 110.83. But in that case, we’d expect strong support below 61.8% retracement of 107.31 to 114.73 at 110.14 to bring rebound.
In the bigger picture, as long as 107.31 support holds, medium term rise from 98.97 (2016 low) is not completed yet. And another rise is in favor. Break of 114.73 resistance will target a test on 118.65 high first. However, break of 107.31 will dampen this will and extend the medium term fall back to 98.97 low.
