USD/JPY Daily Outlook

Daily Pivots: (S1) 108.69; (P) 109.07; (R1) 109.68; More..

The break of 109.20 minor resistance turns focus to 109.72 resistance. Break will resume whole rise from 104.45. Next target will be 100% projection of 104.45 to 108.47 from 106.48 at 110.50. For now, near term outlook will stay bullish as long as 108.27 support holds, even in case of another retreat.

In the bigger picture, strong support was seen from 104.62 again. Yet, there is no confirmation of medium term reversal. Corrective decline from 118.65 (Dec. 2016) could still extend lower. But in that case, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. Meanwhile, on the upside, break of 112.40 key resistance will be a strong sign of start of medium term up trend.