Daily Pivots: (S1) 109.96; (P) 110.07; (R1) 110.28; More..
break of 110.21 temporary top suggests rally resumption. Intraday bias in USD/JPY is turned back to the upside. Whole rally from 104.45 is in progress and should target 100% projection of 106.48 to 109.72 from 107.65 at 110.89 next. Nevertheless, break of 109.79 support will confirm short term topping and bring deeper pull back.
In the bigger picture, USD/JPY is staying in long term falling channel that started at 118.65 (Dec. 2016). There is no clear indication of trend reversal yet. Hence, rise from 104.45 is seen as a correction and down trend could still extend through 104.45 low. However, sustained break of the channel resistance will be an important sign of bullish reversal and target 114.54 resistance for confirmation.
