Daily Pivots: (S1) 109.42; (P) 110.00; (R1) 110.34; More….
USD/JPY’s rise from 108.12 resumes after brief retreat as reaches as high as 110.62 so far. Intraday bias remains on the upside for 111.58 support turned resistance. Considering bullish convergence in 4 hour MACD, sustained break of 111.58 will argue that fall from 118.65 is merely a corrective move and has completed. Outlook will then be turned bullish for 115.49 resistance and above. Meanwhile, below 109.58 minor support will turn bias to the downside and extend the whole decline from 118.65 to 61.8% retracement of 98.97 to 118.65 at 106.48.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. Current development suggests that it’s not completed yet and is extending. In case of deeper decline, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77 to bring rebound. Rise from 75.56 is still expected to resume later after the correction from 125.85 completes.
