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

USD/JPY retreated sharply after hitting 110.32 and intraday bias is turned neutral again. Another rise is in favor as long as 109.32 minor support holds. Above 110.32 should resume the rise from 107.47 to retest 110.95 high. 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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