Daily Pivots: (S1) 103.53; (P) 103.93; (R1) 104.14; More..
USD/JPY was rejected by falling channel resistance and dropped sharply after hitting 104.39. With break of 103.59 minor support, intraday bias is turned back to the downside for retesting 102.58 low. Break will resume larger down trend from 111.17. On the upside, sustained break of the channel resistance will argue that the down trend from 111.71 has finally completed. Stronger rise would be seen to 105.67 resistance for confirmation.
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. On the upside, break of 105.67 resistance is needed to be the first signal of medium term reversal. Otherwise, outlook will remain bearish.
