Daily Pivots: (S1) 108.99; (P) 109.54; (R1) 110.02; More…

USD/JPY’s fall from 111.65 is still in progress and intraday bias remains on the downside. Such decline is seen as at least correcting the whole rise from 102.58. Next target is 38.2% retracement of 102.58 to 111.65 at 108.18. On the upside, break of 110.33 resistance is needed to indicate short term topping. Otherwise, outlook will stay bearish.

In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. Sustained trading below 55 day EMA would argue that the pattern from 101.18 is starting another falling leg, that could head back to 102.58 support and below. For now, outlook won’t turn bullish as long as 111.71 resistance holds, even in case of strong rebound.

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