USD/JPY Daily Outlook

USD/JPY Daily Outlook

Daily Pivots: (S1) 82.21; (P) 82.52; (R1) 82.78; More..

USD/JPY jumped to as high as 82.83 so far. While it's losing some upside momentum, further rally is still expected with 81.96 minor support intact. Current rise from 77.12 should target a test on 84.17 resistance. Though, below 81.96 will indicate short term topping and would bring deeper pull back to 4 hours 55 EMA (now at 81.33) before staging another rise.

In the bigger picture, rise from 77.13 is viewed as a leg inside the consolidation pattern from 75.56. Such rally could extend to 84.17 and above. But after all, there is no clear indication of long term trend reversal yet. As long as 85.51 resistance holds, we'd expect the downside from 124.13 to resume sooner or later to a new low below 75.56.