Daily Pivots: (S1) 129.53; (P) 129.88; (R1) 130.26; More…
USD/JPY is losing some upside momentum as seen in 4 hour MACD. But further rally is still expected with 128.45 minor support intact. Decisive break of 131.34 resistance will confirm up trend resumption for 61.8% projection of 114.40 to 131.34 from 126.35 at 136.81. On the downside, below 128.45 minor support will turn bias to the downside to extend the corrective pattern from 131.34 with another falling leg.
In the bigger picture, current rally is seen as part of the long term up trend form 75.56 (2011 low). Sustained trading above 61.8% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 130.04 will pave the way to 100% projection at 149.26, which is close to 147.68 (1998 high). For now, this will remain the favored case as long as 121.27 support holds.
