Daily Pivots: (S1) 112.66; (P) 112.98; (R1) 113.56; More…
USD/JPY’s rally resumed after brief consolidation and reaches as high as 113.37 so far. Intraday bias is back on the upside for 115.49 resistance. We’re holding on to the view that corrective fall from 118.65 could be completed with three waves down to 108.12. Break of 115.49 will resume larger rally from 98.97 to 125.85 high. On the downside, break of 112.08 support is needed to indicate near term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. It’s uncertain whether it’s completed yet. But in case of another fall, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77 to bring rebound. Meanwhile, break of 115.49 resistance will extend the rise from 98.97 to retest 125.85. Overall, rise from 75.56 is still expected to resume later after the correction from 125.85 completes.
