USD/JPY Daily Outlook

Daily Pivots: (S1) 96.06; (P) 97.19; (R1) 98.42; More.

USD/JPY's recent decline from 110.66 extends further to as low as 94.77 today and remains weak. Break of 95.77 low confirms that whole down trend from 124.13 has resumed. At this point, short term outlook will remain bearish as long as 98.09 resistance holds. The current fall is expected to target 61.8% projection of 61.8% projection of 124.13 to 95.77 from 110.66 at 93.13 next. On the upside, touching of 98.09 will indicate that a short term bottom might be in place and bring consolidation before staging another decline.

In the bigger picture, as mentioned above, down trend from 124.13 is still in progress. Break of 93.13 will target next projection level of 100% at 82.30. Also, note that the current development clears out the long term picture. Price actions that started from 79.75 (95 low) has completed in form of a triangle that needed with five waves to 124.13. In other words fall from 124.13 is just part of an even larger scale down trend which could extend further to retest 79.75 low. On the upside, break of 103.06 resistance is at least needed to indicate that a medium term bottom is formed. Otherwise, medium term outlook remains bearish even in case of strong rebound.

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