Daily Pivots: (S1) 105.45; (P) 105.72; (R1) 106.27; More..
USD/JPY’s rebound from 102.58 resumed by breaking 105.76 and hits as high as 106.21 so far. Intraday bias is back on the upside. Such rally is seen as at least correcting the down trend from 111.71 to 102.58, with prospect of being an up trend of its own. Sustained break of 38.2% retracement of 111.71 to 102.58 will pave the way to 61.8% retracement at 108.22. In any case, outlook will remain bullish as long as 104.40 support holds.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016), and there is no clear indication of trend reversal yet. Though, sustained trading above 55 week EMA (now at 105.90) will be the first sign of reversal and turn focus to channel resistance (now at 110.23).
