Daily Pivots: (S1) 103.73; (P) 103.96; (R1) 104.34; More..
USD/JPY rally continues today and focus is now on 104.39 resistance. Break of channel resistance is already a sign that fall from 111.71 has completed. Further break of 104.39 will confirm and bring stronger rise to 38.2% retracement of 111.71 to 102.58 at 106.06. On the downside, however, break of 103.31 will retain near term bearishness and bring retest of 102.58 low.
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.
