Daily Pivots: (S1) 109.56; (P) 109.99; (R1) 110.37; More…
USD/JPY continues to stay in range of 109.11/110.80 and intraday bias remains neutral at this point. Overall outlook is unchanged. With 111.70 resistance intact, , near term outlook remains mildly bearish and deeper fall is expected. Below 109.11 will target 108.12 low first. Break will extend the whole corrective fall from 118.65 to 61.8% retracement of 98.97 to 118.65 at 106.48. We will look for bottoming sign there. Meanwhile, break of 110.70 will indicate near term reversal and turn bias back to the upside for 114.36 resistance instead.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. It’s uncertain whether it’s completed yet. But in case of another fall, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77 to bring rebound. Overall, rise from 75.56 is still expected to resume later after the correction from 125.85 completes.
