Daily Pivots: (S1) 112.85; (P) 113.14; (R1) 113.57; More…
USD/JPY’s rally continues today and hits as high as 113.58 so far. Intraday bias remains on the upside for 114.36 resistance next. Decisive break there will confirm our bullish view that corrective pull back from 118.65 has completed at 108.12. In that case, further rally would be seen to retest 118.65 next. On the downside, below 112.73 minor support will turn intraday bias and bring consolidation before staging another rally.
In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85.
