Daily Pivots: (S1) 112.66; (P) 112.98; (R1) 113.56; More…

USD/JPY’s rally accelerates to as high as 114.10 so far today. The development is in line with our view that correction from 118.65 has completed with three waves down to 108.12. Intraday bias remains on the upside for 115.49 resistance next. Firm break there will now resume larger rally from 98.97 to 125.85 high. On the downside, below 113.04 minor support will turn bias neutral and bring consolidations before staging another rally.

In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. It’s uncertain whether it’s completed yet. But in case of another fall, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77 to bring rebound. Meanwhile, break of 115.49 resistance will extend the rise from 98.97 to retest 125.85. Overall, rise from 75.56 is still expected to resume later after the correction from 125.85 completes.

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