USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 83.47; (P) 83.87; (R1) 84.22; More.

USD/JPY recovers mildly after dipping to as low as 83.33 earlier today. With 83.98 minor resistance intact, intraday bias remains on the downside and further decline is still expected to continue towards 80 psychological level. On the upside, above 83.98 minor resistance will turn intraday bias neutral and bring recovery. But after all, break of 85.89 resistance is needed to signal short term bottoming. Otherwise, outlook will remain bearish and we'd expect another fall even in case of strong recovery.

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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