Daily Pivots: (S1) 113.63; (P) 113.89; (R1) 114.12; More…
USD/JPY recovers today but stays in range above 113.47. Intraday bias remains neutral first. On the downside, break of 113.47 will resume the fall from 116.34. As a corrective to whole up trend from 102.58, break of 112.52 will target 38.2% retracement of 102.58 to 116.34 at 111.08. However, break of 115.05 resistance will bring stronger rebound back to retest 116.34 high.
In the bigger picture, no change in the view that rise from 102.58 is the third leg of the up trend from 101.18 (2020 low). Such rally should target a test on 118.65 (2016 high). Sustained break there will pave the way to 120.85 (2015 high) and raise the chance of long term up trend resumption. This will remain the favored case as long as 55 week EMA (now at 110.91) holds.
