Daily Pivots: (S1) 106.59; (P) 106.78; (R1) 106.87; More..
Intraday bias in USD/JPY is turned neutral as it retreated after hitting channel resistance. Some consolidations could be seen and deeper pull back cannot be ruled out. But outlook will stay bullish as long as 104.91 support holds. Break of 106.95 will resume the rally from 102.58 to 61.8% retracement of 111.71 to 102.58 at 108.22.
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 110.02).
