USD/JPY Daily Outlook
Daily Pivots: (S1) 110.80; (P) 111.02; (R1) 111.46;
Intraday bias in USD/JPY remains neutral first. With 111.53 minor resistance intact, the corrective fall from 113.17 could extend lower. But downside should be contained by 38.2% retracement of 104.62 to 113.17 at 109.90 to bring rebound. On the upside, break of 111.53 minor resistance will turn bias to the upside for retesting 113.17 high first.
In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.36 support holds.
AUD/USD Daily Outlook
Daily Pivots: (S1) 0.7345; (P) 0.7404; (R1) 0.7436;
Outlook in AUD/USD remains unchanged as it’s bounded in consolidation from 0.7309. Intraday bias remains neutral at this point. In case of stronger recovery, upside should be limited below 0.7676 resistance to bring larger fall resumption. On the downside, break of 1.7309 and sustained trading below 0.7328 cluster support (61.8% retracement of 0.6826 to 0.8135 at 0.7326) will extend the fall from 0.8135 to 0.7158 support next.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move that should be completed at 0.8135. Deeper decline would be seen back to retest 0.6826 low. This will now remain the favored case as long as 0.7676 resistance holds.
