USD/JPY Daily Outlook

USD/JPY Daily Outlook

Daily Pivots: (S1) 99.14; (P) 100.00; (R1) 100.74; More...

With 98.69 minor support intact, further rally is still expected in USD/JPY towards 103.73 resistance. Nonetheless, note that rebound from 93.78 might just be the second leg of the consolidation pattern from 103.73 and hence, we'd be cautious on strong resistance below there to bring reversal. Break of 98.69 will suggest that the consolidation pattern has started the third leg and will turn bias back to the downside for 93.78 support.

In the bigger picture, USD/JPY made a top at 103.73 and turned into consolidations. Some more sideway trading would be seen below 103.73. In case of another fall, downside will likely be contained by 92.56 support and bring rebound. Rise from 103.73 is expected to resume after the consolidation through 103.73.