Daily Pivots: (S1) 111.94; (P) 112.58; (R1) 113.10; More…
Intraday bias in USD/JPY remains mildly on the downside as the correction from 113.17 extends. Deeper fall could be seen but downside should be contained by 111.39 resistance turned support to bring rebound. On the upside, above 112.50 minor resistance will bring retest of 113.17 first.
In the bigger picture, current development, with the solid break of medium term channel resistance from 118.65 (2016 high), affirm our view that corrective fall from there has completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will now be the preferred case as long as 119.36 support holds.
