USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 104.11; (P) 104.83; (R1) 105.78; More.

USD/JPY continues to engage in sideway consolidation today. Outlook remains unchanged. Price actions from 105.87 should merely be a correction only and has possibly completed at 103.87 already. Intraday bias remains on the upside for retesting this resistance and further break will confirm that whole rebound from 95.77 has resumed and will encourage rise to 38.2% retracement of 124.13 to 95.77 at 106.60 first. On the downside, though, below 103.87 support turn outlook neutral again and put focus back to 102.58 support.

In the bigger picture, USD/JPY has made a medium term bottom after down trend from 124.13 has just met 76.4% retracement of 79.75 to 147.68 at 95.78. The rebound from there probably still in progress but has already entered resistance zone of 104.96/108.59. Resistance should continues to build up as USD/JPY approaches 108.59 medium term resistance. Failure below there, followed by break of 102.58 support will indicate that such rise from 95.77 has possibly completed and will shift short term bias back to the downside. However, break of 108.59 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.

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