Daily Pivots: (S1) 107.67; (P) 108.28; (R1) 108.64; More…
Intraday bias in USD/JPY remains on the downside at this point. Corrective rebound from 104.45 could have completed at 109.28, ahead of 109.31 key resistance. Break of 106.48 support will confirm this bearish case and target 104.45 low. . For now, risk will stay on the downside as long as 109.28/31 holds, in case of recovery. However, decisive break of 109.31 will be an early sign of medium term reversal and target 112.40 resistance next.
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.
