Daily Pivots: (S1) 110.89; (P) 111.22; (R1) 111.68; More…
A temporary low is formed at 110.74 after breaching 111.50 minor resistance. Intraday bias in USD/JPY is turned neutral first. The corrective pattern from 113.17 short term top could extend with another decline. Below 110.74 will bring another fall. But in that case, downside should be contained by 38.2% retracement of 104.62 to 113.17 at 109.90 to bring rebound.
In the bigger picture, corrective fall from 118.65 (2016 high) should have 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 stay as the preferred case as long as 109.36 support holds.
