USD/JPY Daily Outlook
Daily Pivots: (S1) 94.25; (P) 95.17; (R1) 95.82; More...
USD/JPY's consolidation from 96.70 short term top is still in progress. At this point, we'd expect strong support from 94.55 to contain downside and an eventual upside break out is anticipated. Break of 96.70 will extend recent up trend to 100 key resistance level. However, decisive break of 94.55 will indicate that deeper correction is underway to 61.8% retracement of 90.85 to 96.70 at 93.08 and below.
In the bigger picture, whole decline from 124.13 should have already completed at 75.56. Stronger medium term rally could be seen back towards 101.65 key support turned resistance level. We'll see how USD/JPY responds at around 100 to judge the underlying medium term momentum for stronger up trend. Meanwhile, break of 90.85 support is needed to be the first sign of medium term topping. Otherwise, we'll stay bullish.