USD/JPY Daily Outlook
Daily Pivots: (S1) 101.95; (P) 102.30; (R1) 102.60; More...
Further recovery cannot be ruled out yet. But outlook in USD/JPY will stay bearish as long as 103.44 resistance holds and another decline is expected. Below 101.43 minor support will turn bias back to the downside for 100.61 key support level. Decisive break there will confirm medium term topping at 105.41 on bearish divergence condition in daily MACD and bring dealer towards 96.56 support. However, break of 103.44 will argue that USD/JPY has defended 100.61 key support and bottomed and would turn bias back to the upside for retesting 105.41.
In the bigger picture, medium term up trend from 75.56 is in form of a five way impulsive move with rise from 96.56 as the fifth leg. There is no confirmation of reversal yet but a medium term top should be near, if not formed yet. Sustained trading below 55 days EMA would likely bring deeper correction back to 96.56 support and below. But overall, we'll stay medium term bullish as long as 93.78 support holds and expect rise from 75.56 to extend through 50% retracement of 147.68 to 75.56 at 111.62 eventually.