Daily Pivots: (S1) 107.31; (P) 107.64; (R1) 108.32; More..

Intraday bias in USD/JPY remains on the upside with focus on 61.8% retracement of 111.71 to 102.58 at 108.22. Sustained break there will raise the chance of larger trend reversal and target trend line resistance at 110.01 next. On the downside, below 107.35 minor support will turn intraday bias neutral first. But further rally is expected as long as 106.21 resistance turned support holds.

In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). Sustained break of channel resistance (now at 110.01) will argue that such down trend has completed. Further break of 112.22 resistance will confirm and pave the way back to 118.65. Nevertheless, rejection by the channel resistance will keep medium term outlook bearish.

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