USD/JPY Daily Outlook

Daily Pivots: (S1) 108.56; (P) 109.19; (R1) 109.52; More.

USD/JPY's recovery from 107.89 continues as expected. As this point, intraday bias remains mildly on the upside as long a s108.77 minor support holds. Recovery from 107.89 could extends further to 4 hours 55 EMA (now at 110.33) or higher. But still, upside is expected to be limited by 111.73 resistance and bring another fall. Below 108.77 will flip intraday bias back to the downside for 107.89 low. Break will confirm that decline from 114.77 has resumed for retesting 107.21 low.

In the bigger picture, whole medium term down trend from 124.13 remains in force after USD/JPY failed to take out mentioned trend line resistance decisively. Break of 107.21 low will confirm that such fall has resumed to key medium term support zone of 101.22/65 level. However, since the structure of the fall from 124.13 is not clearly impulsive yet, the fall from 124.13 might only be part of a wide range consolidation pattern only and 101.22/65 key support might hold. Much attention will be paid there on sign of strong rebound.

Meanwhile above 114.77 resistance will indicate that the fall from 124.13 has likely completed and in such case, further rise should be seen to 117.34 resistance. Break will put long term falling trend line resistance (now at 123.13 into focus again. )

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