USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 113.43; (P) 113.57; (R1) 113.83; More…

Intraday bias in USD/JPY remains on the upside at this point. Current rally from 104.62 should target 114.73 resistance next. Decisive break there will confirm larger bullish case. Next target will be 118.65 resistance. On the downside, below 113.31 minor support will turn bias neutral first and bring consolidations, before staging another rally.

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 109.76 support holds.