USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 105.54; (P) 106.00; (R1) 106.43; More…

With 105.20 minor support intact, intraday bias stays on the upside. Sustained trading above 106.07 support turned resistance should confirm short term bottoming at 104.18. More importantly, whole corrective decline from 111.71 has completed with three waves down to 104.18, just missed 100% projection of 111.71 to 105.98 from 109.85 at 104.12. In the case, further rise should be seen to 108.16 resistance next. However, break of 105.20 minor support will turn focus back to 104.18 low instead.

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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.