USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 90.30; (P) 90.57; (R1) 90.78; More.

USD/JPY rebounds strongly after dipping to 89.97 earlier today but upside is still limited below 91.08 resistance. Intraday bias remains neutral and more sideway consolidation could still be seen. Nevertheless, note that rise from 88.13 is still expected to continue as long as 89.62 cluster support (50% retracement of 88.13 to 91.08 at 89.60) holds. Break of 91.08 will target near term trend line resistance (now at 91.34) and then 92.14 resistance. However, note that decisive break of 89.62 cluster support will indicate that rise from 88.13 is possibly finished and will flip intraday bias back to the downside for retesting this low.

In the bigger picture, outlook is rather mixed and we'll 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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