Daily Pivots: (S1) 109.60; (P) 109.82; (R1) 110.18; More…
USD/JPY’s fall resumes after brief consolidation and intraday bias is back on the downside. Firm break of 109.71 confirmed completion of rebound from 104.69, on bearish divergence condition in daily MACD. Deeper decline should now be seen back to retest 104.69 low. On the downside, break of 110.04 minor resistance will turn intraday bias neutral and bring consolidations, before staging another decline.
In the bigger picture, USD/JPY is staying inside falling channel from 118.65. Currently development suggests that rebound from 104.69 is only a corrective move. And fall from 118.65 is not completed yet. Decisive break of 104.69 will extend the down trend towards 98.97 support (2016 low). For now, we’d expect strong support above there to bring rebound.
