USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 84.00; (P) 84.25; (R1) 84.44; More.

USD/JPY drops further to as low as 83.53 in early US session and the break of 83.61/66 support zone indicates that recent decline has resumed. Intraday bias is back to the downside and further fall should be seen towards 80 psychological level next. On the upside, above 84.26 minor resistance will turn intraday bias neutral first. But break of 85.89 resistance is needed to signal short term bottoming. Otherwise, outlook will remain bearish.

In the bigger picture, whole down trend from 2007 high of 124.13 is still in progress and there is no sign of reversal yet. Such down trend could still extend further towards 79.75 (1995 low). Though, we'll be cautiously looking for some sign of loss of momentum in case of further decline. On the upside, however, note that break of 94.97 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will remain bearish.

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