Daily Pivots: (S1) 103.11; (P) 103.44; (R1) 103.69; More...
USD/JPY’s strong rally today suggests short term bottoming at 103.17. Intraday bias is back on the upside for 105.34 resistance. Firm break there, and sustained trading above 55 day EMA, will be the first sign of near term bullish reversal. Stronger rally would be seen to 106.10 resistance to confirm the completion of whole fall from 111.71. Though, this bullish view will be neutralized if USD/JPY falls back below 4 hour 55 EMA.
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. On the upside, break of 106.10 resistance will suggest that the decline from 111.71 has completed. Focus will then be back to this resistance to signal medium term reversal.
