Daily Pivots: (S1) 108.53; (P) 108.65; (R1) 108.79; More…
At this point, intraday bias in USD/JPY remains neutral first, with focus on 108.93 temporary top. Break there will resume recent rise from 104.45. Intraday bias will be turned back to the upside for 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. On the downside, in case of another retreat, downside should be contained by 55 day EMA (now at 107.85) to bring rebound.
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.
