Daily Pivots: (S1) 109.39; (P) 109.79; (R1) 110.10;
Intraday bias in USD/JPY is neutral for the moment with focus on 109.46 minor support. Break there will suggest that rebound from 108.10 has completed at 110.26 already. And intraday bias will be turned back to the downside for 108.10, or further to 61.8% retracement of 104.62 to 111.39 at 107.20. Though, break of 110.26 will resume the rebound to 111.39 resistance next.
In the bigger picture, at this point, we’re slightly favoring the case that corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Above 111.39 will affirm this view and target 114.73 for confirmation. However, it should be noted that USD/JPY is bounded in medium term falling channel from 118.65 (2016 high). Sustained break of 61.8% retracement of 104.62 to 111.39 at 107.20 will likely resume the fall from 118.65 through 104.62 low.
