Daily Pivots: (S1) 105.30; (P) 105.46; (R1) 105.65; More...
USD/JPY’s pull back form 106.10 extends lower today but stays above 104.94 support. Intraday bias remains neutral first and another rise is in favor. On the upside, break of 106.10 will target 106.94 resistance. Sustained break there should confirm completion of the whole decline from 111.71. On the downside, break of 104.94 support will revive near term bearishness and target a test on 104.00 low instead.
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 resistance should confirm completion of the down trend and turn outlook bullish for 118.65 and above.
