USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 110.88; (P) 111.12; (R1) 111.30; More…

Intraday bias in USD/JPY remains neutral at this point. Outlook is unchanged that correction from 113.17 should have completed at 109.76 already. With 110.74 minor support intact, further rally is expected in the pair. Above 111.48 will turn bias to the upside for 112.14. Break will pave the way to retest 113.17 high. Meanwhile, below 110.74 minor support will dampen the bullish case and turn focus back to 109.76 instead.

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. However, decisive break of 109.36 will mix up the outlook again. And deeper fall should be seen back to 61.8% retracement of 104.62 to 113.17 at 107.88 and below.