Daily Pivots: (S1) 88.97; (P) 90.16; (R1) 90.83;
USD/JPY’s rebound from 88.23 continues and break of 89.93 indicates that an intraday low is formed. Some more recovery might be seen but after all, upside is expected to be limited below 92.52 resistance and bring fall resumption. On the downside, below 89.12 will flip intraday bias back to the downside. Break of 88.23 will target key support level of 87.12 next. However, note that a break of 92.52 resistance will indicate that whole fall from 97.77 has completed and stronger rebound should be seen in such case.
In the bigger picture, 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.