USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 109.45; (P) 109.66; (R1) 109.91; More…

USD/JPY recovers mildly today but stays in range of 109.10/110.79. Intraday bias remains neutral at this point. On the upside, break of 110.79 will resume the rebound from 108.71 to retest 111.65 high. On the downside, break of 109.10 will target 108.71 support first. Firm break there will resume the decline from 111.65 and target 38.2% retracement of 102.58 to 111.65 at 108.18 next.

In the bigger picture, medium term outlook is staying neutral with 111.71 resistance intact. The pattern from 101.18 could still extend with another falling leg. Sustained trading below 55 day EMA will bring deeper fall to 107.47 support and below. Nevertheless, strong break of 111.71 resistance will confirm completion of the corrective decline from 118.65 (2016 high). Further rise should then be seen to 114.54 and then 118.65 resistance.

August 26, 2021 at 01:37AM
ActionForex.com
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