USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 110.80; (P) 111.02; (R1) 111.46; More…

USD/JPY is still staying in tight range above 110.58 temporary low. Intraday bias stays neutral. Also, with 111.53 minor resistance intact, the corrective fall from 113.17 could extend lower. But downside should be contained by 38.2% retracement of 104.62 to 113.17 at 109.90 to bring rebound. On the upside, break of 111.53 minor resistance will turn bias to the upside for retesting 113.17 high first.

In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.36 support holds.