USD/JPY Daily Outlook

Daily Pivots: (S1) 112.73; (P) 113.05; (R1) 113.31; More..

A temporary top is in place at 113.38 in USD/JPY and intraday bias is turned neutral first. Another rise is expected with 112.56 minor support intact. Above 113.38 will extend the rebound from 111.37 to 114.54/73 key resistance zone. On the downside, break of 112.56 will possibly extend the correction from 114.54 to 38.2% retracement of 104.62 to 114.54 at 110.75 before completion.

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. However, decisive break of 109.76 will dampen this bullish view and turns outlook mixed again.