Daily Pivots: (S1) 105.05; (P) 105.24; (R1) 105.55; More..

Focus is now on 105.76 resistance in USD/JPY. Decisive break there will confirm resumption of rise from 102.58 and turn bias to the upside. Such rebound is at least correcting the down trend from 111.71 to 102.58. Next target is 38.2% retracement of 111.71 to 102.58 at 106.06. Break will target 61.8% retracement at 108.22. However, firm break of 104.39 will indicate that rebound from 102.58 has completed at 105.76. Intraday bias will be turned to the downside for 103.31 support first.

In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016), and there is no clear indication of trend reversal yet. Though, sustained trading above 55 week EMA (now at 105.90) will be the first sign of reversal and turn focus to channel resistance (now at 110.23).

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