USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 97.89; (P) 99.81; (R1) 101.03; More.

No change in USD/JPY's outlook. With an intraday low in place at 98.59, further consolidation could be seen with risk of stronger recovery. But upside is still expected to be limited by 103.32 resistance and bring fall resumption. On the downside, below 99.79 minor support will flip intraday bias back to the downside. Break of 98.59 low will indicate that decline from 110.66 has resumed for testing 95.77 medium term low.

In the bigger picture, medium term rise from 95.77 have completed at 110.66 with bearish divergence condition in daily MACD. Also, the three wave structure of such rise argues that it's just correction, or part of the correction to the longer term down trend from 124.13. Hence, deeper fall is now expected to retest 95.77 low. On the upside, above 106.14 will turn outlook mixed again and revive the case the rebound from 95.77 is possibly still in progress.

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