Daily Pivots: (S1) 111.35; (P) 111.56; (R1) 111.74; More…
Intraday bias in USD/JPY stays neutral and range trading continues inside 110.68/111.82. On the upside, break of 111.82 will reaffirm the case that correction from 113.17 has completed at 109.76. And in that case, further rise should be seen back to retest 113.17 high. On the downside, below 110.68 will bring another fall. But still, 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. However, decisive break of 109.36 will mix up the outlook again. And deeper fall should be seen back to 61.8% retracement of 104.62 to 113.17 at 107.88 and below.
