Daily Pivots: (S1) 110.55; (P) 110.94; (R1) 110.70; More…
Break of 111.26 minor resistance now argues that USD/JPY has bottomed at 110.18, ahead of 61.8% retracement of 107.31 to 114.73 at 110.14. Intraday bias is turned back tot he upside for 113.38 resistance. Break there will confirm completion of the corrective pull back from 114.73 and turn outlook bullish. Below 1101.8 will extend the correction lower. But we’d again look for bottoming signal in next fall.
In the bigger picture, we’re holding on to the view that correction from 118.65 is completed at 107.31. And medium term rise from 98.97 (2016 low) is going to resume soon. Sustained break of 114.73 should affirm our view and send USD/JPY through 118.65. However, break of 107.31 will dampen this view and extend the medium term fall back to 98.97 low.
