USD/JPY Mid-Day Outlook

USD/JPY's rise from 91.24 extends further today and the break of 93.20 resistance indicates that whole rally from 84.81 is still in progress and has resumed. Intraday bias is flipped back to the upside and further rise could now be seen towards medium term trend line resistance at 95.08 and 55 weeks EMA at 94.21. ON the downside, though a break of 92.08 minor support will serve as a signal that USD/JPY has topped out and will flip intraday bias back to the downside for 91.24 support first and then 87.36.

In the bigger picture, at this point, USD/JPY is still trading well below medium term trend line resistance at 95.08 and 55 weeks EMA at 94.21. Hence, there is no clear indication of reversal yet. A break of 87.36 support will confirm that rebound from 84.81 has completed. The three wave corrective structure will in turn support the case that whole fall form 124.13 is resuming for 1995 low of 79.75. However, note bullish convergence condition is seen in weekly MACD. 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.