USD/JPY Daily Outlook

USD/JPY Daily Outlook

Daily Pivots: (S1) 102.82; (P) 103.28; (R1) 103.74; More...

With 4 hours MACD crossed below signal line, a temporary top is in place at 103.75 and intraday bias is turned neutral first. Some consolidations could be seen but downside should be contained above 101.19 support and bring another fall. Current development suggests that pull back from 105.41 has finished at 100.75 already, ahead of 100.61 key support level. Above 103.75 will target 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. USD/JPY could make another high above 105.41 but we'll focus on reversal as it approaches 50% retracement of 147.68 to 75.56 at 111.62.