USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 90.24; (P) 90.47; (R1) 90.74; More.

USD/JPY rises further to as high as 90.96 in early US session and at this point, intraday bias remains on the upside for near term falling trend line (now at 91.36). Firm break there will affirm the case that correction from 93.74 has finished with three waves down to 88.13 already and will target 92.14 resistance next for confirmation. On the downside, below 90.16 minor support will indicate that an intraday top is formed and turn bias neutral first.

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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