USD/JPY Today Forecast

Daily Pivots: (S1) 88.74; (P) 89.32; (R1) 89.81; .

No change in USD/JPY's outlook. consolidations could still be seen above 88.57 but upside is expected to be limited below 91.26 resistance and bring fall resumption. Below 88.57 will target 87.36 support first. Break will confirm that whole rise from 84.10 has completed with three waves up to 93.74 and medium term down term down trend is resuming for another low below 84.81. However break of 91.26 will invalidate the bearish view and suggest that rise from 84.81 is still in progress for another high above 93.74.

In the bigger picture, the whole down trend from 124.13 should still be in progress even though downside momentum is seen diminishing in bullish convergence condition in weekly MACD. We'd continue to extend more decline in USD/JPY and break of 84.81 should target 1995 low of 79.75. Strong break of 93.74 resistance and sustained trading above 55 weeks EMA (now at 93.63) are needed to invalidate this view. Otherwise, outlook will remain bearish.

Based on ActionForex.com Technical Outlook