USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 104.73; (P) 104.98; (R1) 105.20; More…

Intraday bias in USD/JPY stays neutral for the moment. Some consolidations could be seen above 104.77 temporary low. But upside of recovery should be limited below 106.63 support turned resistance to bring another fall. on the downside, break of 104.77 will extend larger decline to 100% projection of 111.71 to 105.98 from 109.85 at 104.12 next.

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In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). Hence, there is no clear indication of trend reversal yet. The down trend could still extend through 101.18 low. However, sustained break of 112.22 should confirm completion of the down trend and turn outlook bullish for 118.65 and above.