Daily Pivots: (S1) 110.64; (P) 111.11; (R1) 111.37; More….
USD/JPY’s fall and break of 110.99 minor support suggests that rebound from 110.10 is completed. More importantly, the corrective decline from 118.65 is still in progress. Intraday bias is turned back to the downside. Break of 110.10 will confirm fall resumption and target 50% retracement of 98.97 to 118.65 at 108.81. On the upside, break of 112.19 resistance is needed to confirm near term reversal. Otherwise, outlook will stay mildly bearish in case of recovery.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. The impulsive structure of the rise from 98.97 suggests that the correction is completed and larger up trend is resuming. Decisive break of 125.85 will confirm and target 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 and then 135.20 long term resistance. Nonetheless, sustained trading below 55 week EMA (now at 111.16) will extend the consolidation from 125.85 with another fall through 98.97 before completion.
