Daily Pivots: (S1) 113.60; (P) 113.90; (R1) 114.15; More..
No change in USD/JPY’s outlook. With 112.94 minor support intact, further rise is in favor for 114.54/73. But due to loss of upside momentum as seen in 4 hour MACD, we’d be cautious on strong resistance from 114.54/73 to limit upside and bring reversal. On the downside, break of 112.94 minor support will extend the consolidation pattern from 114.54 with another falling leg back to 111.37. 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.
