DislikedUSD/JPY
Daily Pivots: (S1) 120.62; (P) 121.52; (R1) 122.19; More
After some initially volatility, USD/JPY edges lower to 120.77 today and is now pressing mentioned 120.76 cluster support (38.2% retracement of 115.13 to 124.13 at 120.70). As discussed before, fall from 124.13 is still in progress and further decline is in favor as long as 122.40 resistance holds even in case of recovery.
On the upside, a strong rebound to above 122.40 is needed to indicate correction from 124.13 has completed. In such case, retest of 123.66 should be seen and break will suggest that recent rally from 108.99 has resumed.
In the bigger picture, rise from 115.13 has made a top at 124.13 and turned into consolidation since then. But still, rally from 108.99, which is treated as resumption of whole up trend from 101.66, is in progress. Even in case of a deeper correction, downside is expected to be contained by 118.35/57 cluster support zone (38.2% retracement of 108.99 to 124.13 at 118.35 and 61.8% retracement of 115.13 to 124.13 at 118.57) and bring rally resumption. Next medium term upside target will be resistance zone of 100% projection of 101.65 to 121.38 from 108.99 at 128.72 and 100% projection of 108.99 to 122.17 from 115.13 at 128.31. However, break of 118.35/57 cluster support argue that rise from 108.99 has possibly completed and put 115.13 low into focus.Ignored
That is, your pivots. I came up with the daily pivot at 121.63, (R1) 122.41 and (S1) at 120.81.... If you notice, at 1730 yesterday evening it took off at the the daily pivot (121.63) and ran to the support (S1) 120.81 and that was the end of the drive down. From there, it turned around and with retraces it is continuing up. One thing I have always noticed about the USD/JPY is, it will travel between the pivots.
The Dove - Forex Trainer