Daily Pivots: (S1) 114.05; (P) 114.23; (R1) 114.56; More…
USD/JPY’s rally continued and hit as high as 114.69 so far. Intraday bias stays on the upside at this point. Firm break of 61.8% projection of 102.58 to 111.65 from 109.11 at 114.71 will pave the way to 100% projection at 118.18 next. However considering bearish divergence condition in 4 hour MACD, break of 113.87 minor support should indicate short term topping, and turn bias to the downside for deeper pull back, to 4 hour 55 EMA (now at 113.42) and below.
In the bigger picture, corrective decline from 118.65 (2016 high) should have completed at 101.18 already. Rise from the 102.58 is seen as the third leg of the up trend from 101.18. Next target is 114.54 resistance and then 118.65 high. This will now be the preferred case as long as 109.11 support hold, even in case of deep pull back.
