Daily Pivots: (S1) 107.93; (P) 108.28; (R1) 108.75; More..

USD/JPY’s rally is still in progress and intraday bias stays on the upside. Current rally from 102.58 should target long term channel resistance at 110.02 next. Decisive break there will carry larger bullish implications. On the downside, below 107.81 minor support will turn intraday bias neutral and bring consolidations. But outlook will stay bullish as long as 106.21 resistance turned support holds.

In the bigger picture, focus is now back on long term channel resistance (now at 110.02). Sustained break there will indicate that the down trend from 118.65 (Dec 2016) has completed. Further break of 112.22 resistance will confirm this bullish case and target 118.65 next. However, rejection by the channel resistance will keep medium term outlook bearish.

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