USD/JPY Daily Outlook

USDJPY Outlook |

Written by ActionForex.com |

Nov 07 16 02:38 GMT

Daily Pivots: (S1) 102.81; (P) 103.08; (R1) 103.33; More…

USD/JPY’s strong rebound today and break of 104.16 minor resistance suggests that pull back from 105.52 has completed at 102.53. Intraday bias is back on the upside for 105.52 resistance first. Break will extend the rise from 100.07 and target 107.48 resistance. But still, price actions from 98.97 are viewed as a consolidation pattern. Thus, we’d expect upside to be limited by 38.2% retracement of 123.74 to 98.97 at 108.43. On the downside, below 102.53 will extend the fall from 105.52 and target 100.70 support.

In the bigger picture, current development suggests that a medium term bottom is in place at 98.97. Price actions from there are developing into a consolidation pattern. But at this point, we’re expecting at least another fall to 61.8% retracement of 75.56 (2011 low) to 125.85 at 94.77 before the trend reverses. However, sustained break of 55 weeks EMA (now at 108.33) will argue that the trend has reversed earlier than we thought and will turn outlook bullish.

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USD/JPY Daily Outlook