Daily Pivots: (S1) 90.38; (P) 91.65; (R1) 92.46

USD/JPY recovers mildly after diving to 90.84 and at this point, intraday bias remains on the downside as long as 92.02 minor resistance holds. Break of inner rising trend line support is taken as the first alert that whole rebound from 87.13 has completed after failing to sustain above 93.90 cluster resistance. Break of 90.14 will confirm this case. More importantly, this will leave such rebound in three wave corrective structure which is consistent with the medium term bearish view. Retest of 87.13 low should be seen in this case. On the upside, above 92.02 will turn intraday outlook neutral again and raise the odds the correction from 87.13 is not completed yet.

In the bigger picture, stronger than expected rebound from 87.13 dampens the near term bearish case. Considering bullish convergence conditions in daily MACD, whole fall from 110.66 might be completed and strong rally could be seen to 100.54 resistance and above. Meanwhile, note that there is still no clear indication of completion of whole down trend from 124.13 (07 high) yet. As long as medium term falling trend line resistance (124.13, 100.66, now at 106.29) remains intact, such down trend is still in favor to resume after completing the current rebound. Below 90.14 will leave the rebound from 87.13 with corrective three wave structure and will support the medium term bearish case.