USD/JPY Daily Outlook
Daily Pivots: (S1) 113.07; (P) 113.20; (R1) 113.34;
Breach of 113.38 suggests USD/JPY’s rebound from 111.37 is resuming. Intraday bias is back on the upside for 114.54/73 key resistance zone next. On the downside, break of 112.56 minor support will argue the the rebound has completed. And, in that case, the corrective pattern from 114.54 could have started the third leg for 111.37 support and possibly below.
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 109.76 support holds. However, decisive break of 109.76 will dampen this bullish view and turns outlook mixed again.
EUR/CHF Daily Outlook
Daily Pivots: (S1) 1.1429; (P) 1.1447; (R1) 1.1476;
EUR/CHF’s recovery from 1.1343 extends higher today but it’s limited well below 1.1501 resistance. Intraday bias remains neutral first. On the upside, break of 1.1501 will revive the case of bullish reversal. Intraday bias will be turned back to the upside for 1.1713 resistance next. On the downside, break of 1.1343 will turn bias back to the downside for 1.1154/98 key support zone.
In the bigger picture, price actions from 1.2004 medium term top is seen as a correction only. Downside should be contained by support zone of 1.1198 (2016 high) and 61.8% retracement of 1.0629 to 1.2004 at 1.1154 to complete it and bring rebound. This cluster level is in proximity to long term channel support (now at 1.1243) too. A break of 1.2 key resistance is still expected in the medium term long term. However, sustained break of the mentioned support zone will mark reversal of the long term trend. In that case, 1.0629 key support will be back into focus.
