USD/JPY Today Forecast

Daily Pivots: (S1) 94.21; (P) 94.78; (R1) 95.56; .

USD/JPY's rally resumes after brief consolidation and breaks of 95.37 sets the stage for rally to 100% projection of 91.73 to 94.78 from 93.07 at 96.12 next. Break will bring a test of near term channel resistance of 96.64 On the downside, below 94.81 minor support will turn intraday outlook neutral and bring consolidation. But after all, short term outlook will remain bullish as long as 94.01 support holds. However, break of 94.01 will argue that rebound from 91.73 has completed and will turn bias back to the downside for retesting this low.

In the bigger picture, the stronger then expected rebound from 91.73 suggests that a short term bottom is at least in place and mixed up the outlook of USD/JPY. The three wave structure of the fall from 101.43 to 91.73 and the channeling property do argue that it's corrective in nature. But there won't be any confirmation of completion of such fall until a break of 98.87 resistance. On the other hand, it's still possible that decline from 101.43 is resuming whole down trend from 124.13. Hence while we'll favor upside as long as 93.07 support holds, we'll stay neutral until at least a break of the upper channel resistance at 96.64.

Based on ActionForex.com Technical Outlook