Daily Pivots: (S1) 109.88; (P) 110.08; (R1) 110.38; More…
Upside momentum in USD/JPY remains unconvincing. But with 109.46 minor support intact, further rise is in favor. Rebound from 108.10 should extend to retest 111.39 resistance. Break will resume the rebound from 104.62 and target a test on 114.73 key resistance level. However, on the downside, below 109.36 minor support will delay the bullish case and turn bias to the downside for 108.10 support again.
In the bigger picture, at this point , we’re slightly favoring the case that corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Above 111.39 will affirm this view and target 114.73 for confirmation. However, it should be noted that USD/JPY is bounded in medium term falling channel from 118.65 (2016 high). Sustained break of 61.8% retracement of 104.62 to 111.39 at 107.20 will likely resume the fall from 118.65 through 104.62 low.
