Daily Pivots: (S1) 109.09; (P) 109.27; (R1) 109.49; More…
USD/JPY edged higher to 109.53 but quickly retreated back to established range. Also, 4 hour MACD is staying below signal line. Intraday bias remains neutral first. Deeper retreat cannot be ruled out. But downside should be contained by 107.77 resistance turned support to bring another rally. Above 109.53 will resume the rise from 104.62 and target 61.8% retracement of 114.73 to 104.62 at 108.48 9 110.86 next.
In the bigger picture, break of 108.12 support turned resistance now suggests that corrective fall from 118.65 (2016 high) has completed with three waves down to 104.62. And, rise from 98.97 (2016 low) could be resuming. Focus is back on 114.73 resistance and break there will pave the way to 118.65 and above. This will now be the preferred case as long as USD/JPY stays above 55 day EMA (now at 107.47).
