USD/JPY Daily Outlook

USD/JPY Daily Outlook

Daily Pivots: (S1) 95.66; (P) 96.12; (R1) 96.56; More..

USD/JPY's consolidation from 96.70 temporary top is still in progress and intraday bias remains neutral. While another fall cannot be ruled out, downside should be contained by 94.55 resistance turned support and bring another rally. Recent rise is expected to resume sooner or later and above 96.70 will extend the whole up trend 77.13 to 100 psychological level.

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.