Daily Pivots: (S1) 138.25; (P) 138.58; (R1) 138.91; More…
While USD/JPY continues to lose upside momentum as seen in 4 H MACD, there is no clear sign of topping yet. Further rise is still expected to 100% projection of 127.20 to 137.90 from 129.62 at 140.32. Break there will target 142.48 fibonacci level. On the downside, however, break of 137.41 will turn bias back to the downside for deeper pull back.
In the bigger picture, rise from 127.20 is seen as the second leg of the corrective pattern from 151.93 high. Stronger rally would be seen to 61.8% retracement of 151.93 to 127.20 at 136.34. Sustained break there will pave the way back to retest 151.93. On the downside, however, break of 133.73 support will argue that the pattern could have started the third leg through 127.20 low.
