Daily Pivots: (S1) 112.16; (P) 112.30; (R1) 112.45; More…
USD/JPY is staying in consolidation below 112.44 temporary top and intraday bias remains neutral first. As long as 111.65 minor support holds, further rise is expected. Above 112.44 will target a test on 113.17 high. Break will resume larger rally from 104.62 to 114.73 resistance. On the downside, however, 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.
