USD/JPY Daily Outlook

USD/JPY Daily Outlook

Daily Pivots: (S1) 79.54; (P) 79.75; (R1) 79.98;

Focus in USD/JPY remains on 80.12 minor resistance. Break will indicate that the correction from 80.37 has completed and will turn bias back to the upside. In such case, recent rally from 77.13 should be resuming for 80.61 resistance (50% retracement of 84.17 to 77.13 at 80.65). Before that, another fall could still be seen as correction from 80.37 extends. But we'd expect downside to be contained above 78.86 support (61.8% retracement of 77.93 to 80.37 at 78.86) and bring rally resumption eventually.

In the bigger picture, firstly, there is no sign of trend reversal in USD/JPY yet and the larger down trend from 124.13 is still expected to continue. Nonetheless, consolidation pattern from 75.56 should extend for a while below 85.51 first. In any case, we'd stay bearish as long as 85.51 resistance holds and expect an eventual downside breakout.