Daily Pivots: (S1) 114.12; (P) 115.50; (R1) 116.76; More…
USD/JPY’s fall and break of 114.76 support indicates short term topping at 118.65. Intraday bias is back on the downside for 55 day EMA (now at 113.10) and below. At this point, we’d expect strong support from 38.2% retracement of 98.97 to 118.65 at 111.13 to contain downside and bring rally resumption. Above 118.65 will target at test on 125.85 key resistance next. However, sustained break of 111.13 will argue that whole rise from 98.97 has completed and bring deeper fall to 61.8% retracement at 106.48 and below.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. The impulsive structure of the rise from 98.97 suggests that the correction is completed and larger up trend is resuming. Decisive break of 125.85 will confirm and target 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 and then 135.20 long term resistance. Rejection from 125.85 and below will extend the consolidation with another falling leg before up trend resumption.
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