Daily Pivots: (S1) 110.71; (P) 111.20; (R1) 111.49; More…
USD/JPY’s reaches as low as 110.53 so far. Break of 110.83 indicates resumption of whole decline from 114.73. Intraday bias stays on the downside for 61.8% retracement of 107.31 to 114.73 at 110.14. We’d look for bottoming signal again below 110.14. On the upside, 111.27 minor resistance will turn intraday bias neutral first. But near term outlook will remain bearish as long as 113.38 resistance holds.
In the bigger picture, we’re holding on to the view that correction from 118.65 is completed at 107.31. And medium term rise from 98.97 (2016 low) is going to resume soon. Sustained break of 114.73 should affirm our view and send USD/JPY through 118.65. However, break of 107.31 will dampen this view and extend the medium term fall back to 98.97 low.
