USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 104.27; (P) 104.57; (R1) 104.87; More…

USD/JPY is staying in consolidation above 104.00 temporary low and intraday bias remains neutral. Further fall is expected as long as 105.20 support turned resistance holds. Below 104.00 will resume larger down trend to 61.8% projection of 109.85 to 104.18 from 106.94 at 103.43 next. Nevertheless, firm break of 105.20 will bring stronger rebound to 106.94 resistance 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.