Daily Pivots: (S1) 113.60; (P) 114.05; (R1) 114.38; More…
Intraday bias in USD/JPY is turned neutral with the current sharp decline. With 112.88 minor support intact, further rise remains in favor. Decisive break of 114.36 resistance will confirm our bullish view that corrective pull back from 118.65 has completed at 108.12. In that case, further rally would be seen to retest 118.65. However, break of 112.88 will indicate rejection from 114.36 and near term reversal. In such case, intraday bias will be turned back to the downside for 4 hour 55 EMA (now at 111.94).
In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85.
