Expansion of USD/JPY’s Rally

Pair's rally has expanded to hit the 114.29 level. Trading is on the upside towards 114.36 resistance. Strong breach in that zone indicates that corrective retreat from 118.65 has ended at 108.12.

If that happens, another rally should align a repeat test of 118.65. Following pivot points include:(S1) 112.85; (P) 113.14; (R1) 113.57.

Breach of 112.88 support should argue formation of a near term top. If USD/JPY backs down, the prognosis stays bullish.

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.