Daily Pivots: (S1) 111.85; (P) 112.23; (R1) 112.73; More…
USD/JPY’s rise from 108.81 resumed by taking out 112.91 and reaches as high as 113.27 so far. The break of medium term channel resistance suggests that whole corrective pull back from 118.65 has completed at 108.12 already. Intraday bias is back on the upside for 114.36 resistance. Decisive break there should confirm this bullish view and target 118.65 again. On the downside, break of 111.72 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85.
