Daily Pivots: (S1) 113.60; (P) 113.85; (R1) 114.05; More..
USD/JPY’s rebound from 111.37 is still in progress. Despite diminishing upside momentum, further rise is still expected t 114.54/73 resistance zone. We’d be cautious on strong resistance from there to bring another fall to extend recent consolidation. Overall, rise from 104.62 is still in progress and decisive break of 114.73 will confirm resumption.
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.
