Daily Pivots: (S1) 107.16; (P) 107.66; (R1) 107.96; More...
USD/JPY recovers mildly after drawing support from 4 hour 55 EMA, but stays below 108.16 temporary low. Intraday bias remains neutral first. Further rise will remain in favor as long as 106.79 support holds. Above 108.16 will target 109.85 resistance first. Break will argue that larger rebound from 101.18 might be resuming to 112.22 key resistance. On the downside, below 106.79 minor support will dampen the bullish case and turn bias back to the downside for 106.07 instead.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec2016). 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.
