Daily Pivots: (S1) 92.03; (P) 92.90; (R1) 93.52; More.

USD/JPY's break of 92.08 minor support argues that a short term top is in place at 93.74 on bearish divergence condition in 4 hours MACD. Intraday bias is flipped back to the downside. Further break of 91.24 support will argue that whole rebound from 84.81 has completed and should bring deeper fall towards 87.36 support for confirmation. On the upside, even in case of another rise, USD/JPY should should continue to lose momentum as it approaches medium term trend line resistance at 95.08 and 55 weeks EMA at 94.21 and bring reversal.

In the bigger picture, at this point, USD/JPY is still trading below medium term trend line resistance at 95.06 and 55 weeks EMA at 94.21. Hence, there is no clear indication of reversal yet. A break of 87.36 support will indicate that rebound form 84.81 has completed and the whole fall form 124.13 is possibly 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.

USD/JPY