USD/JPY Daily Outlook

Daily Pivots: (S1) 126.92; (P) 127.94; (R1) 128.84; More…

Intraday bias in USD/JPY remains on the downside. Correction from 131.34 would extend lower to 125.09 cluster support (38.2% retracement of 114.40 to 131.34 at 124.86). Strong support is expected from there to contain downside to bring rebound. On the upside, break of 129.77 minor resistance will suggest that the correction is finished and bring retest of 131.34.

In the bigger picture, current rally is seen as part of the long term up trend form 75.56 (2011 low). Sustained trading above 61.8% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 130.04 will pave the way to 100% projection at 149.26, which is close to 147.68 (1998 high). For now, this will remain the favored case as long as 121.27 support holds.

Featured Analysis

Learn Forex Trading