Daily Pivots: (S1) 108.63; (P) 108.90; (R1) 109.31; More..
Intraday bias in USD/JPY remains neutral for the moment. As noted before, consolidations should be relatively brief as long as 108.08 minor support holds. On the upside break of 109.22 will resume the rally from 102.58 to long term channel resistance at 110.02 next. On the downside, however, break of 108.08 will bring deeper correction.
In the bigger picture, focus is now back on long term channel resistance (now at 110.02). Sustained break there will indicate that the down trend from 118.65 (Dec 2016) has completed. Further break of 112.22 resistance will confirm this bullish case and target 118.65 next. However, rejection by the channel resistance will keep medium term outlook bearish.
