USD/JPY Daily Outlook

Daily Pivots: (S1) 90.12; (P) 90.60; (R1) 91.03; More.

Intraday bias in USD/JPY remains neutral at this point and more sideway trading might be seen below 91.08. Nevertheless, downside should be contained by 89.62 cluster support (50% retracement of 88.13 to 91.08 at 89.60) and bring rally resumption. Break of 91.08 will target near term trend line resistance (now at 91.34) and then 92.14 resistance. However, note that decisive break of 89.62 cluster support will indicate that rise from 88.13 is possibly finished and will flip intraday bias back to the downside for retesting this low.

In the bigger picture, outlook is rather mixed and we'll stay neutral for the moment. On the upside, break of 92.14 resistance will confirm that whole decline from 93.74 has completed with three waves down to 88.13 already. The corrective structure will in turn indicate that rise from 84.81 is still in progress for another high above 93.74. On the downside, break of 88.13 will reaffirm the bearish case that rise from 84.81 is completed at 93.74 already and will turn focus to 87.36 support for confirmation.

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