USD/JPY Mid-Day Outlook

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

USD/JPY's break of 93.90 cluster resistance dampens near term bearish view and argue that stronger rise is underway. At this point, intraday bias remains on the upside as long as 92.82 minor support holds. The current rally from 87.13 might extend further to test 100.54 key structural resistance. On the downside, below 92.82 will turn intraday outlook neutral and bring consolidation. But another rally is now in favor as long as 90.14 support holds.

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 now 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.

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