USD/JPY’s Upside Impulse is Gone

The pair has formed a temporary top at 113.68. The upside impulse is gone. Trading state is neutral towards consolidation. 111.72 support should fill the downside of a pull back and lead to further rally. Following pivot points include: (S1) 112.85; (P) 113.14; (R1) 113.57.

Over 113.68, USD/JPY will head towards the resistance of 114.36. Firm breach in that area will suggest that corrective retreat from 118.65 has concluded at 108.12. If that happens, another rally would head towards a repeat test of 118.65.

The lift from 98.97 keeps progressing. Breach of 118.65 will head towards a test on 125.85 maximum. Expansion of the long term uptrend from 75.56 is unlikely. Formation of a top around 125.85 will be closely watched.