USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 113.53; (P) 114.04; (R1) 114.45; More…

Intraday bias in USD/JPY remains neutral for consolidation below 114.54 temporary top. As long as 113.51 support holds, further rise is still expected. On the upside, 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, on bearish divergence condition in 4 hour MACD, 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.