Daily Pivots: (S1) 112.54; (P) 112.83; (R1) 113.04; More…
Intraday bias in USD/JPY remains neutral for the moment. Consolidation from 113.13 temporary could extend and another fall cannot be ruled out. But as long as 111.82 resistance turned support holds, further rise is expected. Decisive break of 113.17 will resume whole rally from 104.62 and target 114.73 resistance next. Nonetheless, break of 111.82 will extend the consolidation pattern from 113.17 with another decline.
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.
