Daily Pivots: (S1) 112.49; (P) 112.68; (R1) 113.02; More..
USD/JPY lost momentum after hitting 112.88 and intraday bias is turned neutral again. Further rise cannot be ruled out yet. But based on the corrective structure, upside should be limited by 61.8% retracement of 114.54 to 111.62 at 113.42. On the downside, below 111.94 minor support will turn bias to the downside to 111.62 low first. Break will resume the corrective fall from 114.54 to 38.2% retracement of 104.62 to 114.54 at 110.75. We’ll look for bottoming signal above 109.76 key support in that case.
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. However, decisive break of 109.76 will dampen this bullish view and turns outlook mixed again.
