Daily Pivots: (S1) 112.56; (P) 112.82; (R1) 113.13; More…..
USD/JPY’s rebound from 112.02 extended higher. Break of 112.87 minor resistance suggests that pull back from 113.74 has completed already. Intraday bias is turned back to the upside for 113.74 first. Break will resume the rise from 110.83 to retest 114.73 key resistance. For now, near term outlook will remain bullish as long as 112.02 support holds, in case of retreat.
In the bigger picture, we’re holding on to the view that correction from 118.65 is completed at 107.31. And medium term rise from 98.97 (2016 low) is going to resume soon. Sustained break of 114.73 should affirm our view and send USD/JPY through 118.65. However, break of 107.31 will dampen this view and extend the medium term fall back to 98.97 low.
