Daily Pivots: (S1) 113.60; (P) 114.01; (R1) 114.44; More…
USDJPY surges in initial trading and breaches 11449 key resistance. The development argues that rally from 107.31 is possibly resuming. Intraday bias is now cautious on the upside. Sustained trading above 114.49 will pave the way to retest 118.65 high. However, break of 112.95 support will now indicate rejection from 114.49 and turn bias to the downside for 111.64 support and below.
In the bigger picture, medium term rise from 98.97 (2016 low) is not completed yet. It should resume after corrective fall from 118.65 completes. Break of 114.49 resistance will likely resume the rise to 61.8% projection of 98.97 to 118.65 from 107.31 at 119.47 first. Firm break there will pave the way to 100% projection at 126.99. This will be the key level to decide whether long term up trend is resuming.
