USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 112.60; (P) 113.27; (R1) 113.92; More…

Intraday bias in USD/JPY stays on the downside as fall from 118.65 is still in progress. Such decline would target 38.2% retracement of 98.97 to 118.65 at 111.13. However, such fall is seen as a corrective move. Hence, we’d expect strong support from 111.13 to contain downside an bring rebound. On the upside, above 115.36 resistance will argue that such correction is finished and turn bias to the upside for 118.65. Break will resume whole rise from 98.97 and target 125.85 key resistance.

In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. The impulsive structure of the rise from 98.97 suggests that the correction is completed and larger up trend is resuming. Decisive break of 125.85 will confirm and target 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 and then 135.20 long term resistance. Rejection from 125.85 and below will extend the consolidation with another falling leg before up trend resumption.

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