Daily Pivots: (S1) 133.42; (P) 135.02; (R1) 135.84; More…
USD/JPY’s decline from 139.37 medium term top continues today and hit as low as 132.74 so far. It’s now seen as in correction to medium term up trend. Intraday bias stays on the downside for 131.34 resistance turned support and below. But strong support is expected above 126.35 to contain downside, at least on first attempt, to bring rebound. But for now, risk will stay on the downside as long as 135.55 support turned resistance holds, in case of recovery.
In the bigger picture, current rally is seen as part of the long term up trend from 75.56 (2011 low). Next target is 100% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 149.26, which is close to 147.68 (1998 high). This will remain the favored case as long as 126.35 support holds.
