Daily Pivots: (S1) 111.88; (P) 112.15; (R1) 112.63; More…
USD/JPY lost some upside momentum after hitting 100% projection of 109.76 to 111.82 from 110.37 at 112.43. But with 111.65 minor support intact, further rally is expected. Sustained break of 112.43 will pave the way to retest 113.17 high. Nonetheless, break of 111.65 will dampen the immediate bullish outlook and turn bias back to the downside instead.
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.
