USD/JPY Daily Analysis
No change in USD/JPY’s outlook as a correction from 131.34 is extended. A more profound decline could be seen but the downside should be contained by 125.09 cluster support (38.2% retracement of 114.40 to 131.34 at 124.86) to bring a rebound. On the upside, the break of 129.77 minor resistance will suggest that the correction is finished and bring a retest of 131.34.
In the bigger picture, the current rally is seen as part of the long-term uptrend from 75.56 (2011 low). Sustained trading above 61.8% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 130.04 will pave the way to 100% projection at 149.26, which is close to 147.68 (1998 high). For now, this will remain the favored case as long as 121.27 support holds.
