Daily Pivots: (S1) 108.78; (P) 109.09; (R1) 109.46; More…
Intraday bias in USD/JPY remains neutral for consolidation above 108.72 temporary low. While further recovery might be seen, near term outlook remains bearish as long as 110.61 support turned resistance holds. And, deeper decline is still expected. Firm break of 108.81 support will resume whole corrective fall from 118.65 and target 61.8% retracement of 98.97 to 118.65 at 106.48.
In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85. If fall from 118.65 extends lower, downside should be contained by 61.8% retracement of 98.97 to 118.65 at 106.48 and bring rebound.
