The further plunge through 123.73 and 122.76 supports leaves a negative tone still for Wednesday, but whilst above 121.53 still seen as corrective within the bigger picture breakout.
We still see a more positive underlying tone intact after the May breakout from the multi -month range and the push above the 2002 peak at 125.81 to push USDJPY to its highest level for over 13 years!
- We see a downside bias for 122.36; break here aims for 121.53, which we would look to try to hold.
- But above 123.35 opens risk up to 123.73/76 and maybe closer to 124.62.
Short/ Intermediate-term Outlook – Upside Risks:
- We see a positive tone with the bullish threat to 125.81/85.
- Above here targets 129.08 and 130.00.
What Changes This? Below 121.53 signals a neutral tone, only shifting negative below 120.64.