USD/JPY Daily Outlook
Daily Pivots: (S1) 113.43; (P) 113.57; (R1) 113.83;
USD/JPY’s rally continues today and reaches as high as 113.96 so far. Intraday bias stays on the upside. Current rally from 104.62 should target 114.73 resistance next. Decisive break there will confirm larger bullish case. On the downside, below 113.31 minor support will turn bias neutral first and bring consolidations, before staging another rally.
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.
USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9765; (P) 0.9792; (R1) 0.9847;
USD/CHF’s rise from 0.9541 is still in progress. Intraday bias remains on the upside for 0.9866 key resistance level, 61.8% retracement of 1.0067 to 0.9541 at 0.9866. Decisive break there will bring retest of 1.0067 high. On the downside, below 0.9736 minor support will turn intraday bias neutral first.
In the bigger picture, focus is now back on 0.9866 support turned resistance. Decisive break there will suggests that pull back from 1.0067 has completed at 0.9541. And larger rise from 0.9186 low is ready to resume. Decisive break of 1.0067 will pave the way to 1.0342 key resistance next. Meanwhile, break of 0.9541 will extend the decline but we don’t expect a break of 0.9186 low even in that case.
