Daily Pivots: (S1) 127.04; (P) 127.43; (R1) 128.00; More…
Intraday bias in USD/JPY remains neutral first. On the upside, break of 129.77 minor resistance will suggest that correction from 131.34 is finished. Intraday bias will back on the upside for retesting 131.34 high. On the downside, break of 126.35 will extend the correction. But downside should be contained by 125.09 cluster support (38.2% retracement of 114.40 to 131.34 at 124.86) to bring rebound.
In the bigger picture, current rally is seen as part of the long term up trend form 75.56 (2011 low). Sustained trading above 61.8% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 130.04 will pave the way to 100% projection at 149.26, which is close to 147.68 (1998 high). For now, this will remain the favored case as long as 121.27 support holds.
