Daily Pivots: (S1) 113.74; (P) 113.93; (R1) 114.16; More…
A temporary top is in place at 114.05 in USD/JPY with today’s retreat. Intraday bias is turned neutral first. Some consolidations would be seen but downside should be contained above 112.55 support to bring another rally. Above 114.05 will target 114.73 key resistance. Decisive break there will confirm larger bullish case. Next target will be 118.65 resistance.
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.
