Daily Pivots: (S1) 114.47; (P) 114.74; (R1) 115.19; More…
USD/JPY’s rise and break of 114.94 resistance should confirm near term reversal on double bottom pattern (111.58, 111.68). That’s whole correction from 118.65 is completed at 111.58. Intraday bias is now back on the upside for a test on 118.65 resistance. Break will resume whole rally from 98.97 and target 125.85 high next. On the downside, break of 113.60 support is now needed to indicate completion of the current rise. Otherwise, outlook will remain bullish in case of retreat.
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.
