USD/JPY Daily Outlook
Daily Pivots: (S1) 101.03; (P) 101.35; (R1) 101.95; More...
A temporary low is in place at and intraday bias is turned neutral first. Some consolidation might be seen but near term outlook stays bearish as long as 103.44 resistance holds. Deeper fall is expected to 100.61 key support level. Again, we'd like to point out the bearish divergence condition in daily MACD which argues that the larger up trend might be reversing. Break of 100.61 will confirm the bearish scenario and target 95.65 support next.
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.