USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 111.40; (P) 111.82; (R1) 112.52; More..

A temporary top is formed at 112.22 in USD/JPY and intraday bias is turned neutral first. Downside of retreat should be contained well above 110.28 resistance turned support to bring another rally. Decisive break of 112.40 resistance will affirm medium term bullishness and target 114.54 key resistance next.

In the bigger picture, current development argues that corrective fall from 118.65 (Dec 2016) might have completed with three waves down to 104.45 already. Focus is back of 114.54 key resistance. Decisive break there will confirm this case and bring resumption of whole rise from 98.97 (2016 low) towards 125.85 (2015 high).