Daily Pivots: (S1) 113.39; (P) 113.52; (R1) 113.71; More…
No change in USD/JPY’s outlook. With 113.81 resistance intact, further decline is still in favor. Sustained break of 110.66 will extend larger fall from 125.85 to long term fibonacci level at 106.63. On the upside, break of 113.81, however, will indicate near term reversal and turn outlook bullish.
In the bigger picture, price actions from 125.85 medium term top is developing into a deeper correction. Further fall would be seen to 38.2% retracement of 75.56 (2011 low) to 125.85 at 106.63 and possibly below. Break of 113.81 resistance is needed to be the first sign of completion of the correction. Otherwise, risk will stay on the downside in case of rebound.