DAILY MARKET OUTLOOK
Update Time: 10 Jul 2015 08:05 GMT
USD/JPY - 122.16
Despite dollar's sell-off to a fresh 7-week trough at 120.42 (Wednesday) earlier this week, subsequent rebound and then yesterday's breach of 121.70 (Tuesday low, then resistance) signals decline from June's near 13-year peak at 125.86 has made a temporary low there and stronger retracement towards 122.88/93 is likely.
However, reckon 123.75/78 (July 2 high and 61.8% r of 125.86-120.42) would cap upside and bring another sell-off later.
On the downside, only a daily close below 121.20 would indicate correction over and yield re-test of 120.42, break would extend aforesaid fall to retrace long-term uptrend to 120.00 and then 119.60/70.