USD/JPY Daily Outlook

Daily Pivots: (S1) 92.76; (P) 93.70; (R1) 94.55; More.

USD/JPY's rally stalls after a brief break of 93.90 cluster resistance but still, intraday bias remains on the upside as long as 93.82 minor support holds. Sustained trading above 93.90 will indicate that stronger rally is underway to test 100.54 key structural resistance. On the downside, 92.82 will indicate that an intraday top is in place and turn short term outlook mixed too. Though, another rally is mildly in favor as long as pull back is contained above 90.14 supports.

In the bigger picture, stronger than expected rebound from 87.13 dampens the near term bearish case. Considering bullish convergence conditions in daily MACD, whole fall from 110.66 might be completed and strong rally could be seen to 100.54 resistance and above. Meanwhile, note that there is still no clear indication of completion of whole down trend from 124.13 (07 high) yet. As long as medium term falling trend line resistance (124.13, 100.66, now at 106.29) remains intact, such down trend is still in favor to resume after completing the current rebound. Below 90.14 will leave the rebound from 87.13 with corrective three wave structure and will support the medium term bearish case.

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