USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 88.80; (P) 89.34; (R1) 89.90; More.

No change in USD/JPY's outlook. While some consolidation might be seen, short term outlook in USD/JPY remains bearish. Below 88.79 will indicate that fall from 94.61 is resuming for retesting 87.13 low. Also, the corrective three wave structure of the rebound from 87.13 to 94.61 is consistent with the medium term bearish view. Break of 87.13 will indicate that down trend has resumed. On the upside, in case of another recovery, upside should be limited by 91.67 resistance and bring fall resumption.

In the bigger picture, with USD/JPY still staying below 55 days EMA, fall from 110.66 should still be in progress. On resumption, such decline should target 100% projection of 124.13 to 95.77 from 110.66 at 82.3. However, considering bullish convergence condition in daily MACD, another rise above 94.61 will be an alert that whole decline from 110.66 has completed. Focus will then be on 100.54 resistance for confirmation.

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