Daily Pivots: (S1) 108.38; (P) 108.55; (R1) 108.67; More…
USD/JPY recovers after drawing support form 4 hour 55 EMA but stays below 108.93 temporary top. Intraday bias remains neutral first and more consolidations could be seen. In case of another retreat, downside should be contained well above 106.48 support. On the upside, above 108.93 will target 109.31 key resistance. Decisive break there will carry larger bullish implications next target will be 100% projection of 104.45 to 108.47 from 106.48 at 110.50.
In the bigger picture,strong support was seen from 104.62 again. Yet, there is no confirmation of medium term reversal. Corrective decline from 118.65 (Dec. 2016) could still extend lower. But in that case, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. Meanwhile, on the upside, break of 112.40 key resistance will be a strong sign of start of medium term up trend.
