USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 89.97; (P) 90.34; (R1) 90.66; More.

USD/JPY dips to as low as 89.76 earlier today but remains supported above 89.62 cluster support (50% retracement of 88.13 to 91.08 at 89.60). Rise from 88.13 is still expected to continue. Above 91.08 will bring rally resumption to 92.14 resistance next. 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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