Daily Pivots: (S1) 109.71; (P) 109.83; (R1) 110.00; More..
USD/JPY recovers notably today but stays below 110.14 temporary top. Intraday bias remains neutral first. Further rise remains in favor as long as 109.53 minor support holds. Firm break of 110.28 will resume whole rally from 104.45 for channel resistance (now at 111.16). On the downside, however, break of 109.53 will turn bias to the downside for 108.30 support 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.
