Daily Pivots: (S1) 110.92; (P) 111.04; (R1) 111.20; More…
USD/JPY’s strong rebound and firm break of 110.58 minor resistance indicates that pull back from 113.17 has completed at 110.58 already. Intraday bias is back on the upside for retesting 113.17 first. Break there will resume larger rally from 104.62 for 114.73 key resistance. On the downside, below 110.58 will extend the correction from 113.17. But downside should be contained by 38.2% retracement of 104.62 to 113.17 at 109.90 to bring rebound.
In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.36 support holds.
