Daily Pivots: (S1) 104.98; (P) 105.21; (R1) 105.49; More..
Focus is now on 106.21 resistance with today’s strong rally. Firm break there will resume rise from 102.58, to 61.8% retracement of 111.71 to 102.58 at 108.22. Rejection by 106.21 will bring more consolidations but further rally will remain in favor as long as 104.91 support holds. However, break of 104.91 should now indicate completion of the rise from 102.58 and turn near term outlook bearish.
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).
