USD/JPY: Rally Is In Progress

Technical Reports

Trading is on the upside for key resistance zone 114.20/73, as growth from 112.30 continues to high 113.90. Price moves from 114.54 are seen as a consolidation. Pivot points are at: (S1) 113.51; (P) 113.67; (R1) 113.94.

While deeper fall is expected, downside should be contained by 38.2% retracement of 104.62 to 114.54 at 110.75 to bring a rebound. Break of key resistance zone 114.20/73 will resume larger rally from 104.62. Trading below minor support 113.41 will become neutral.

Overcoming of resistance 114.73 will renew growth from 98.97 to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is close to 125.85. A corrective drop from 118.65 should have completed with three waves down to 104.62, but deeper fall is possible to 61.8% retracement of 104.62 to 113.17 at 107.88 and below.