Daily Pivots: (S1) 112.85; (P) 113.14; (R1) 113.57; More…
With 111.72 support intact, further rally is expected in USD/JPY for 114.36 resistance. Break there will confirm our bullish view that corrective pull back from 118.65 has completed at 108.12. In that case, further rally would be seen to retest 118.65 next. However, break of 111.72 will indicate near term reversal and turn bias back to the downside for 108.81.
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.
