Daily Pivots: (S1) 116.28; (P) 116.73; (R1) 117.44; More…
USD/JPY strengthens mildly today but is staying in range below 118.65. Intraday bias remains neutral as consolidation could extend. In case of another fall, downside of retreat should be contained by 114.76 minor support and bring another rise. Above 118.65 will extend the current rally from 98.97 to test 125.854 high. We’d be cautious on topping at 125.85 on first attempt.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. The impulsive structure of the rise from 98.97 suggests that the corrective is completed and larger up trend is resuming. Decisive break of 125.85 will confirm and target 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 and then 135.20 long term resistance.
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