USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 79.57; (P) 79.70; (R1) 79.87; More...

USD/JPY climbs to as high as 80.36 so far today and intraday bias remains on the upside for the moment. Current rise from 76.02, which is part of the rally from 75.56, should target 61.8% retracement of 85.51 to 75.56 at 81.70 next. On the downside, below 79.30 will argue that a short term top is formed and bring some consolidations first, before staging another rally.

In the bigger picture, the case of long term reversal is starting to build up as USD/JPY is trading above the long term falling channel that started at 2007 high of 124.13. As noted before, bullish convergence condition is present in weekly MACD for some time already. Sustained trading above 79.52 at least confirms that 75.56 is a medium term bottom. Further break of 85.51 will indicate reversal and target a test on 101.22 support turned resistance, which is close to 100 psychological level.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box