U.S. Dollar Versus Yen Daily Outlook
The retreat from 103.75 temporary top extends lower today. But intraday bias stays neutral first as USD/JPY is trying to draw support from 4 hours 55 EMA. We’re holding on to the bullish view that pull back from 105.41 has finished at 100.75 already, ahead of 100.61 key support level. Another rally is expected and above 103.75 will target a retest on 105.41 high. Though, break of 101.19 will invalidate our view and turn focus back to 100.61.
In the bigger picture, medium term up trend from 75.56 is in form of a five way impulsive move with rise from 96.56 as the fifth leg. There is no confirmation of reversal yet but a medium term top should be near, if not formed yet. USD/JPY could make another high above 105.41 but we’ll focus on reversal as it approaches 50% retracement of 147.68 to 75.56 at 111.62.