Daily Pivots: (S1) 113.67; (P) 113.94; (R1) 114.35; More…
USD/JPY dips notably in early US session but stays in range of 112.95/114.44. Intraday bias remains neutral first. On the upside, decisive break of 114.49 will confirm that correction pattern from 118.65 has completed at 107.31 already. And USD/JPY should then target a test on 118.65. On the downside, below 112.95 will bring deeper pull back. But strong support should be seen from 111.64 support to maintain bullishness and bring rebound.
In the bigger picture, medium term rise from 98.97 (2016 low) is not completed yet. It should resume after corrective fall from 118.65 completes. Break of 114.49 resistance will likely resume the rise to 61.8% projection of 98.97 to 118.65 from 107.31 at 119.47 first. Firm break there will pave the way to 100% projection at 126.99. This will be the key level to decide whether long term up trend is resuming.
