USD/JPY Daily Outlook

Daily Pivots: (S1) 92.23; (P) 92.91; (R1) 94.02; More.

USD/JPY stalls after hitting as high as 93.58. At this moment, we're still expecting upside to be limited by 93.90 cluster resistance and bring resumption of fall from 100.54. Below 91.80 will flip intraday bias back to the downside for retesting 87.13 low. However, note that sustained break of 93.90 cluster resistance will dampen the short term bearish view and put 100.54 key near term structural resistance back into focus.

In the bigger picture, fall from 110.66, which is treated as resumption of down trend from 124.13, is still in progress. While some rebound might be seen, such decline is expected to resumption after completing the correction, targeting 100% projection of 124.13 to 95.77 from 110.66 at 82.3. However, considering bullish convergence condition in daily MACD, break of 93.90 resistance will be an important early alert that whole decline from 110.66 has completed. Focus will then be on 100.54 resistance for confirmation.

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