Daily Pivots: (S1) 110.73; (P) 111.07; (R1) 111.38; More…
A temporary top is in place at 111.39 with current retreat. Intraday bias in USD/JPY is turned neutral for consolidations. Downside should be contained by 110.02 resistance turned support to bring rise resumption. Above 111.39 will extend the rally from 104.62 to trend line resistance at 112.31. Firm break there will target 114.73 resistance next.
In the bigger picture, corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Rise from 104.62 is possibly resuming the up trend from 98.97 (2016 low). This will be the preferred case as long as 55 day EMA (now at 108.65) holds. Decisive break of 114.73 resistance will confirm our view and target 118.65 and above.
