Daily Pivots: (S1) 110.80; (P) 110.99; (R1) 111.28; More…
USD/JPY is staying in range of 110.58/112.14. Intraday bias remains neutral first. As noted before, the corrective fall from 113.17 is possibly not completed yet. Break of 110.58 will bring deeper decline. Nonetheless, in that case, we’d expect strong support from 38.2% retracement of 104.62 to 113.17 at 109.90 to bring rebound. On the upside, above 112.14 will target a test on 113.17 high.
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.
