USD/JPY Daily Outlook

Daily Pivots: (S1) 104.52; (P) 105.07; (R1) 105.40; More.

4 hours MACD's cross below signal line suggest that an intraday top is in place at 105.70. Intraday outlook in USD/JPY is turned neutral for the moment and further retreat could be seen to 4 hours 55 EMA (now at 104.27). Nevertheless, downside should be contained above 103.19 support. Above 105.70 will indicate rebound from 95.77 has resumed for 38.2% retracement of 124.13 to 95.77 at 106.60. But still, as mentioned before, resistance should continued to build up significantly as USD/JPY approaches 108.59 medium term resistance.

In the bigger picture, sustained trading above 55 days EMA (now at 103.52) indicates that a medium term bottom is in place after down trend from 124.13 has just met 76.4% retracement of 79.75 to 147.68 at 95.78. Focus is now on 108.59 resistance and break of which will break a series of lower highs, lower lows pattern that started at 124.13 and will confirm that this down trend has completed already. In such case, stronger medium term rebound should then be seen to retest 114.77 resistance first. However, failure below 108.59, followed by break of 100.02 support will firstly indicate rebound from 95.77 has completed. Secondly, it will keep the lower higher, lower lows pattern intact and suggest that down trend from 124.13 is still in force.

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