USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 113.85; (P) 114.21; (R1) 114.91; More…

USD/JPY lost momentum ahead of 114.73 resistance and intraday bias is turned neutral first. Further rise is expected as long as 113.51 support holds. Decisive break of 114.73 will confirm larger bullish case. Next target will be 118.65 resistance. Nonetheless, break of 113.51 will indicate short term topping and bring lengthier consolidation 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 109.76 support holds.