Daily Pivots: (S1) 105.34; (P) 105.55; (R1) 105.70; More...
USD/JPY’s strong break of 104.94 support suggests that rebound from 104.00 has completed with three waves up to 106.10. That came after rejection by falling 55 day EMA. The development argues that larger fall from 111.71 is not completed, and it might be resuming. Intraday bias is back on the downside for retesting 104.00 first. Break will confirm and target 101.18 low. Though, break of 105.03 minor resistance will turn bias neutral first.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). 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 resistance should confirm completion of the down trend and turn outlook bullish for 118.65 and above.
