Daily Pivots: (S1) 108.79; (P) 109.56; (R1) 110.34; More…
USD/JPY’s fall from 114.36 resumed by taking out 109.11. Despite subsequent recovery, 4 hour MACD stays below signal line. Intraday bias remains on the downside for 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. On the upside, break of 110.80 resistance is needed to indicate completion of fall from 114.36. Otherwise, outlook will stay bearish in case of recovery.
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.
