Daily Pivots: (S1) 134.66; (P) 135.33; (R1) 135.90; More…
Intraday bias in USD/JPY remains neutral as consolidation from 136.99 is extending. Considering bearish divergence condition in 4 hour and daily MACD, a correction could be imminent. On the downside, break of 134.25 support will confirm short term topping at 136.99. Intraday bias will be back on the downside for 131.34 support resistance turned support. Nevertheless, firm break of 136.99 will resume larger up trend to 100% projection of 114.40 to 131.34 from 126.35 at 143.29.
In the bigger picture, current rally is seen as part of the long term up trend from 75.56 (2011 low). Next target is 100% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 149.26, which is close to 147.68 (1998 high). This will remain the favored case as long as 126.35 support holds.
