Daily Pivots: (S1) 110.82; (P) 110.98; (R1) 111.27; More…
Intraday bias in USD/JPY remains neutral at this point. Fall from 111.82 might extend lower. But after all, price actions from 113.17 are viewed as a corrective pattern. Downside should be contained by 38.2% retracement of 104.62 to 113.17 at 109.90 to bring rebound. On the upside, above 111.82 will resume the rebound from 109.76 and 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. 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.
