USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 89.62; (P) 89.97; (R1) 90.32; More.

USD/JPY rebounded strongly after drawing support from 4 hours 55 EMA but it's still limited below 90.68 resistance. Intraday bias remains neutral and more consolidations could still be seen. However, another rise would be mildly in favor as long as 89.19 minor support holds. Above 90.68 will bring rise resumption towards near term falling trend line (now at 91.48). On the downside, note that further break of 89.19 will argue that rebound from 88.13 is over and will flip intraday bias back to the downside for retesting this support instead.

In the bigger picture, with 87.36 support intact, there is no confirmation that rise from 84.81 is finished. Also, stronger than expected rebound from 88.13 mixed up the outlook in USD/JPY. We'd 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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