Daily Pivots: (S1) 112.72; (P) 113.33; (R1) 113.86; More…
USD/JPY recovers after drawing support from 38.2% retracement of 110.37 to 114.54 at 112.94 and intraday bias is turned neutral first. On the upside, above 113.55 will suggests that the pull back from 114.54 has completed. Intraday bias will be turned back to the upside for retesting 114.54 and 114.73 key resistance. Nonetheless, sustained trading below 38.2% retracement of 110.37 to 114.54 at 112.94 will target 61.8% retracement at 111.96.
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 109.76 support holds.
