Daily Pivots: (S1) 77.20; (P) 77.46; (R1) 77.91; More....
USD/JPY's rises further to as high as 77.80 in early US session as rebound from 76.02 extends. As noted before, the strength of the rise is starting to argue that USD/JPY has bottomed out at 76.02 already. But we'd still prefer to see sustained break of 78.28 resistance to confirm first. Otherwise, we'll stay cautiously bearish. Below 77.10 will flip bias back to the downside for retesting 76.02. However, decisive break of 78.28 will indicate completion of whole fall from 79.52 and should turn outlook bullish for this resistance and above.
In the bigger picture, there is no sign of long term trend reversal in USD/JPY yet even though downside momentum is diminishing with bullish convergence condition in weekly MACD. USD/JPY is still trading below the falling 55 weeks EMA. Not to mention that it's far below the falling 55 months EMA. The long term down trend is expected to resume sooner or later with an eventual break of 75.56 low to 70 psychological level. In any case, we'd at least prefer to see sustained break of 55 weeks EMA (now at 79.40) before considering the case of reversal.
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