USD/JPY Daily Outlook

Daily Pivots: (S1) 113.90; (P) 114.67; (R1) 115.22; More…

Intraday bias in USD/JPY remain son the downside for the moment. Correction from 118.65 short term top is expected to extend lower to 38.2% retracement of 98.97 to 118.65 at 111.13. At this point, we’d expect strong support from there to contain downside and bring rebound. Above 116.86 minor resistance will turn bias to the upside for 118.65 high. However, sustained break of 111.13 will argue that whole rise from 98.97 has completed and bring deeper fall to 61.8% retracement at 106.48 and below.

In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. The impulsive structure of the rise from 98.97 suggests that the correction is completed and larger up trend is resuming. Decisive break of 125.85 will confirm and target 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 and then 135.20 long term resistance. Rejection from 125.85 and below will extend the consolidation with another falling leg before up trend resumption.

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