Daily Pivots: (S1) 109.61; (P) 109.82; (R1) 110.05; More…
USD/JPY is losing upside momentum as seen in 4 hour MACD. But with 109.50 minor support intact, further rise is expected. Current rally from 104.62 should target 61.8% retracement of 114.73 to 104.62 at 110.86 next. Nonetheless, considering bearish divergence condition in 4 hour MACD, break of 109.50 will indicate short term topping. And lengthier consolidation would be seen before staging another rally.
In the bigger picture, break of 108.12 support turned resistance now suggests that corrective fall from 118.65 (2016 high) has completed with three waves down to 104.62. And, rise from 98.97 (2016 low) could be resuming. Focus is back on 114.73 resistance and break there will pave the way to 118.65 and above. This will now be the preferred case as long as USD/JPY stays above 55 day EMA (now at 107.78).
