Daily Pivots: (S1) 108.41; (P) 108.60; (R1) 108.89; More..
USD/JPY is losing some downside momentum as seen in 4 hour MACD. But with 109.26 resistance intact, further decline is in favor to 107.65 support. Decisive break there will carry larger bearish implications. On the upside, break of 109.26 resistance will turn bias back to the upside for 110.28 high instead.
In the bigger picture, there is no change in the bearish outlook yet in spite of the rebound from 104.45. The pair is staying in long term falling channel that started at 118.65 (Dec. 2016). Rise from 104.45 is seen as a correction and the 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.
