USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 114.28; (P) 114.95; (R1) 115.50; More…

Prior breach of 115.43 minor resistance suggests that pull back from 118.65 is completed at 112.56 already. Intraday bias stays mildly on the upside for retesting 118.65 first. Break will resume whole rise from 98.97 and target 125.85 key resistance. In case of another fall, we’d expect strong support from 38.2% retracement of 98.97 to 118.65 at 111.13 to contain downside and bring rebound.

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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