Daily Pivots: (S1) 112.01; (P) 112.45; (R1) 112.83; More….
At this point, the fall from 113.74 is still seen as a correction. As long as 111.98 support holds, further rally is expected in USD/JPY. Above 112.87 minor resistance will turn bias to the upside for 113.74. Break will target 114.73 key resistance. However, break of 111.98 support will extend the decline from 114.73 with another fall, possibly to 61.8% retracement of 107.31 to 114.73 at 110.14 before completion.
In the bigger picture, we’re holding on to the view that correction from 118.65 is completed a 107.31. And medium term rise from 98.97 (2016 low) is resuming. Sustained break of 114.73 should affirm our view and send USD/JPY through 118.65. However, break of 107.31 will dampen this will and extend the medium term fall back to 98.97 low.
