Daily Pivots: (S1) 136.07; (P) 136.63; (R1) 137.72; More…
Intraday bias in USD/JPY stays on the upside at this point. Current rally from 127.20 would target next fibonacci level at 142.48. On the downside, break of 135.35 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, the break of 38.2% retracement of 151.93 to 127.20 at 136.64 suggests that whole down trend from 151.93 has completed at 127.20 already. Tentatively, rise from 127.20 is seen as the second leg the medium term pattern from 151.93. Further rally is expected to 61.8% retracement at 142.48. This will now remain the favored case as long as 55 day EMA (now at 134.10) holds.
