USD/JPY Daily Outlook

USD/JPY Daily Outlook

Daily Pivots: (S1) 102.09; (P) 102.31; (R1) 102.52; More...

Intraday bias in USD/JPY is mildly on the upside for 120.82 resistance. Consolidation from 100.75 is still in progress and could extend further. But we'd expect strong resistance from 103.44 to limit upside and bring fall resumption eventually. On the downside, below 101.19 will turn focus back to 100.61/75 key support zone. Break will resume whole decline from 105.41 and should target 61.8% projection of 105.41 to 100.75 from 102.82 at 99.94 next. Also, note that decisive break of 100.61 key support will have larger bearish implication.

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.