Daily Pivots: (S1) 105.66; (P) 105.90; (R1) 106.21; More...

Range trading continues in USD/JPY and intraday bias remains neutral first. With 107.05 resistance intact, further decline remains in favor. Break of 105.10 will bring retest of 104.18 support first. Further break will resume whole decline from 111.71. On the upside, break of 107.05 will revive the case of near term reversal and bring stronger rally.

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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. However, sustained break of 112.22 should confirm completion of the down trend and turn outlook bullish for 118.65 and above.

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