Daily Pivots: (S1) 112.82; (P) 113.15; (R1) 113.73; More…
USD/JPY rises to as high as 113.63 so far today. The break of 113.17 resistance confirms resumption of whole rally from 104.62. Intraday bias is back on the upside for 114.73 key resistance next. Decisive break there will should confirm larger bullish case. On the downside, break of 112.55 support is needed to indicate short term topping. Otherwise, near term outlook will remain bullish 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 109.76 support holds.
