Daily Pivots: (S1) 91.18; (P) 91.47; (R1) 91.83; More.

As discussed before, an intraday top is in place at 91.86 and intraday bias is turned neutral for the moment. USD/JPY's retreat could continue and might have another fall to 4 hours 55 EMA (now at 90.55). But after all, another rise is still in favor as long as 88.96 support holds. Above 91.86 will target 92.31 resistance first and then 100% projection of 84.81 to 90.75 from 87.36 at 93.30 next. However, note that break of 88.96 support will argue that whole rise from 84.81 has finished with bearish divergence conditions in 4 hours MACD. Focus will then be shifted to 87.36 support for confirmation.

In the bigger picture, as noted before, there is no clear indication of medium term reversal yet as USD/JPY is still trading well below 55 weeks EMA (now at 94.54) as well as the trend line resistance at 94.44. Whole down trend from 124.13 could still be in progress and might extend towards 1995 low of 79.75 after completing the rebound from 84.81. However, note that sustained trading above the medium trend line resistance will be the first signal of medium term reversal and in such case, focus will turn to 101.43 resistance for confirmation.


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