Daily Pivots: (S1) 110.77; (P) 111.04; (R1) 111.57; More…
Intraday bias in USD/JPY remains on the upside for 112.14 resistance. As noted before, the correction from 113.17 should have completed at 109.76 already. Break of 112.14 will bring retest of 113.17 high. On the downside, below 110.74 minor support will turn bias back to the downside for retesting 109.76 again. But after all, we’d continue to expect strong support around 38.2% retracement of 104.62 to 113.17 at 109.90 to bring rebound.
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. However, decisive break of 109.36 will mix up the outlook again. And deeper fall should be seen back to 61.8% retracement of 104.62 to 113.17 at 107.88 and below.
