Daily Pivots: (S1) 104.76; (P) 105.31; (R1) 105.62; More..
USD/JPY’s breach of channel support is the first sign that rebound from 102.58 has completed. Yet, it’s staying well above 104.40 support. Intraday bias remains neutral and another rise is still in favor. on the upside, sustained break of 38.2% retracement of 111.71 to 102.58 will pave the way to 61.8% retracement at 108.22. However, on the downside, break of 104.40 will turn bias to the downside for 103.31 support.
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 105.84) will be the first sign of reversal and turn focus to channel resistance (now at 110.15).