Daily Pivots: (S1) 104.64; (P) 104.85; (R1) 105.04; More...
Despite breaching 105.03 support turned resistance, USD/JPY couldn’t sustain above the level and retreated. Intraday bias stays neutral first. On the downside, break of 104.34 will will target 104.00 low first. Break will resume larger decline from 111.71. Nevertheless, sustained break of 105.03 support turned resistance will neutralize immediate near term bearishness. Intraday bias will be turned back to the upside for 106.10 resistance instead.
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.
