Daily Pivots: (S1) 114.19; (P) 114.83; (R1) 115.28; More…
USD/JPY’s fall from 116.34 accelerated lower. But we’ll still expect strong support from 114.26 resistance turned support to bring rebound. On the upside, above 115.03 minor resistance will turn bias back to the upside for retesting 116.34 high. However, considering bearish divergence condition in daily MACD, firm break of 114.26 will argue that USD/JPY is already in a larger scale correction. Deeper fall would then be seen to 112.52 support and possibly below.
In the bigger picture, no change in the view that rise from 102.58 is the third leg of the up trend from 101.18 (2020 low). Such rally should target a test on 118.65 (2016 high). Sustained break there will pave the way to 120.85 (2015 high) and raise the chance of long term up trend resumption. For now, this will remain the favored case as long as 112.52 support holds, in case of deep pull back.
