Daily Pivots: (S1) 117.86; (P) 118.15; (R1) 118.59; More…
USD/JPY is staying in consolidation below 118.44 temporary top and intraday bias remains neutral. In case of deeper retreat, downside should be contained above 116.34 resistance turned support to bring rally resumption. On the upside, firm break of 118.65 will target 100% projection of 109.11 to 116.34 from 114.40 at 121.63.
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 125.85 (2015 high) and raise the chance of long term up trend resumption. This will remain the favored case as long as 113.46 support holds.
