Daily Pivots: (S1) 113.75; (P) 113.95; (R1) 114.18; More…
USD/JPY rebounds strongly after drawing support from 4 hour 55 EMA but it’s staying below 114.94 resistance. Intraday bias remains neutral first. On the upside, decisive break of 114.94 resistance should confirm completion of the corrective pull back from 118.65. This would be supported by a double bottom pattern (111.58, 111.68). In such case, intraday bias will be turned to the upside for retesting 118.65. In case of another decline, 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.
