Daily Pivots: (S1) 80.47; (P) 80.69; (R1) 81.06;
As noted before, a short term bottom is formed at 80.29 on mild bullish convergence condition in 4 hours MACD. Choppy decline from 84.17 has possibly finished too. Intraday bias remains on the upside and stronger rebound would be seen back towards 84.17 resistance. On the downside, though, below 80.29 will indicate that choppy decline from 84.17 is still in progress for 61.8% retracement of 76.02 to 84.17 at 79.13.
In the bigger picture, note again that there is bullish convergence condition in weekly MACD. USD/JPY is also sustaining above 55 weeks EMA (now at 79.98). Monthly MACD is also staying above signal line for some time already. These are signs that USD/JPY has bottomed in medium term at 75.56. The loss of momentum ahead of 85.51 key resistance argues that USD/JPY is merely developing into sideway pattern rather than a strong medium term rebound. At this point, we'd favor more sideway trading between 75.56/85.51 ahead and price actions would remain choppy for a while.
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