Daily Pivots: (S1) 109.15; (P) 109.50; (R1) 109.95; More..
A temporary top is formed at 109.85 with today’s retreat. Intraday bias in USD/JPY is turned neutral for some consolidations first. Downside should be contained above 108.06 resistance turned support to bring another rally. On the upside, break of 109.85 will resume the rise from 105.98 to retest 111.71/112.22 resistance zone. Decisive break there will carry larger bullish implications.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec2016). Hence, there is clear indication of trend reversal yet. Break of 105.98 support would extend the down trend 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.
