Daily Pivots: (S1) 113.49; (P) 113.79; (R1) 114.03; More…
Intraday bias in USD/JPY remains neutral for the moment. A short term top could be in place at ahead of 114.73 resistance, on bearish divergence condition in 4 hour MACD. On the downside, break of 113.51 minor support will bring deeper pull back to 38.2% retracement of 110.37 to 114.54 at 112.94. We’d expect strong support from there to contain downside and bring rebound. On the upside, decisive break of 114.73 will confirm larger bullish case. Next target will be 118.65 resistance.
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 109.76 support holds.
