USD/JPY Daily Outlook

USD/JPY Daily Outlook

Daily Pivots: (S1) 101.10; (P) 101.48; (R1) 101.77; More...

Intraday bias in USD/JPY remains on the downside for the moment. The corrective pattern from 100.75 should have finished at 103.75 already and the decline from 105.41 is possibly resuming. Break of 100.75 will target 100% projection of 105.41 to 100.75 from 103.75 at 99.09. Also, decisive break of 100.61 key support will have larger bearish implications. On the upside, above 101.87 minor resistance will turn bias neutral first.

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. Decisive break of 100.61 support will argue that USD/JPY has already topped out in medium term at 105.41 and should bring deeper fall back to 38.2% retracement o 75.56 to 105.41 at 94.00. In case of another rise, we'll focus on reversal as it approaches 50% retracement of 147.68 to 75.56 at 111.62.