Daily Pivots: (S1) 111.88; (P) 112.15; (R1) 112.63; More…
USD/JPY rises to as high as 112.42 so far, just below 100% projection of 109.76 to 111.82 from 110.37 at 112.43. Intraday bias remains on the upside. Sustained break of 112.43 will pave the way to retest 113.17 high. On the downside, break of 111.65 support is needed to indicate short term topping. Otherwise, further rise is expected even in case of retreat.
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. However, decisive break of 109.36 will mix up the outlook again. And deeper fall should be seen back to 61.8% retracement of 104.62 to 113.17 at 107.88 and below.
