Daily Pivots: (S1) 107.82; (P) 109.55; (R1) 110.49; More..
Outlook in USD/JPY remains unchanged as consolidation from 109.72 is extending. Intraday bias remains neutral first. As long as 108.27 support holds, further rally is expected. On the upside, break of 109.72 will resume the rise from 104.45 for 100% projection of 104.45 to 108.47 from 106.48 at 110.50. However, sustained break of 108.27 support will indicate near term reversal and turn outlook bearish. Deeper fall should then be seen to 106.48 support first.
In the bigger picture, there is no confirmation of medium term reversal. Corrective decline from 118.65 (Dec. 2016) could still extend lower. But in that case, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. Meanwhile, on the upside, break of 112.40 key resistance will be a strong sign of start of medium term up trend.