USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 105.84; (P) 106.24; (R1) 106.48; More...

A temporary low is formed at 105.98 in USD/JPY and intraday bias is turned neutral first. Further decline is expected as long as 107.49 resistance holds. Break of 105.98 will target 100% projection of 111.71 to 106.91 from 109.38 at 104.58 next. Reactions from 104.58 could finally reveal whether fall from 111.71 is corrective or impulsive. On the upside, break of 107.49 resistance will indicate short term bottoming and turn bias back to the upside for 109.38 resistance.

In the bigger picture, at this point, whole decline from 118.65 (Dec 2016) continues to display a corrective look, with well channeling. There is no clear sign of completion yet. Break of 101.18 will target 98.97 (2016 low). Meanwhile, sustained break of 112.22 should confirm completion of the decline and turn outlook bullish for 118.65 and above.

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