Daily Pivots: (S1) 88.97; (P) 90.16; (R1) 90.83;
USD/JPY’s dived to as low as 88.23 before turning sideway. At this point, intraday bias remains on the downside and fall from 97.77 is still expected to continue. Next target will be 87.12 key support level. On the upside, above 89.90 minor resistance will turn intraday outlook neutral and bring consolidations first. But rebound should be limited well below 92.52 resistance and bring fall resumption.
In the bigger picture, USD/JPY’s break of lower channel support today suggests that recent decline is accelerating. As mentioned before, USD/JPY’s pattern of lower highs, lower lows since 2007 high of 124.13 is still intact, so is the down trend from there. Break of 87.12 key support will pave the way to extend the downtrend to next key level of 1995 low at 79.75. On the upside, above 92.52 resistance will indicate that a short term bottom is formed and will bring stronger rebound. But after all fall from 101.43 is still expected to continue as long as 97.77 resistance holds.
Source: ActionForex