Daily Pivots: (S1) 104.15; (P) 104.45; (R1) 104.76; More...

Intraday bias in USD/JPY stays mildly on the upside for 105.67 minor resistance. We’d look for strong resistance from there to limit upside. As noted before, USD/JPY is staying inside falling channel, and below 55 day EMA. Down trend from 111.71 is expected to continue as long as 105.67 resistance holds. On the downside, below 103.65 minor support will bring retest of 103.17 low.

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In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). Hence, there is no clear indication of trend reversal yet. The down trend could still extend through 101.18 low. On the upside, break of 106.10 resistance is needed to be the first signal of medium term reversal. Otherwise, outlook will remain bearish.

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