USD/JPY Daily Outlook

USD/JPY Daily Outlook

Daily Pivots: (S1) 102.49; (P) 102.83; (R1) 103.39; More...

Intraday bias in USD/JPY remains on the upside as the consolidation pattern from 100.75 continues. Further rise could be seen. But at this point, we'd still expect strong resistance from 103.44 to limit upside to complete the consolidation from 100.75. Below 102.23 minor support will turn bias back to the downside for 100.61/75 key support zone. However, sustained break of 103.44 should confirm that USD/JPY has defended 100.61 key support and will turn near term outlook bullish for a test on 105.41 high.

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.