Daily Pivots: (S1) 113.86; (P) 114.22; (R1) 114.77; More…
Intraday bias in USD/JPY remains neutral for the moment. The pair is still bounded in range of 111.58/114.94 despite this week’s rebound. Outlook is unchanged. Price actions from 118.65 are viewed as a corrective move. Firm break of 114.94 resistance will indicate that it’s completed, on a double bottom pattern (111.58, 111.68). In such case, intraday bias will be turned to the upside for retesting 118.65. Also, the whole rise from 98.97 is likely resuming. On the downside, in case of another fall, we’d still expect strong support from 38.2% retracement of 98.97 to 118.65 at 111.13 to contain downside and bring rebound.
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.
