Daily Pivots: (S1) 109.36; (P) 109.62; (R1) 109.84; More…

Break of 110.19 resistance suggests that choppy rise from 107.42 has resumed. Intraday bias in USD/JPY is back on the upside for retesting 110.95 high. Firm break there will resume larger rise from 102.58 to 111.71 resistance next. For now, further rally will remain in favor as long as 109.32 support holds. However, break of 109.32 will turn bias back to the downside for 108.55, and below.

In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. Though, as notable support was seen from 55 day EMA, rise from 102.58 is mildly in favor to extend higher. Decisive break of 111.71/112.22 resistance will suggest medium term bullish reversal. Rise from 101.18 could then target 118.65 resistance (Dec 2016) and above.

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