Daily Pivots: (S1) 108.63; (P) 108.79; (R1) 109.00; More..
USD/JPY is still holding in range of 108.33/109.35 and intraday bias remains neutral first. With 108.33 minor support intact, the consolidation should be brief. On the upside, break of 109.35 will resume the larger rise from 102.58 long term channel resistance at 110.02 next. However, on the downside, break of 108.33 will indicate short term topping. Intraday bias will be turned to the downside for 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.
