Daily Pivots: (S1) 112.77; (P) 113.53; (R1) 114.00; More…
Intraday bias in USD/JPY remains mildly on the downside for 111.58 low. Corrective fall from 118.65 is possibly still in progress and break of 111.58 will target 38.2% retracement of 98.97 to 118.65 at 111.13. We’d expect strong support from there to contain downside and bring rebound. On the upside, break of 114.94 resistance should now confirm completion of the correction. And in that case, USD/JPY should target a retest on 118.65 high.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. The impulsive structure of the rise from 98.97 suggests that the correction is completed and larger up trend is resuming. Decisive break of 125.85 will confirm and target 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 and then 135.20 long term resistance. Rejection from 125.85 and below will extend the consolidation with another falling leg before up trend resumption.
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