Daily Pivots: (S1) 107.93; (P) 108.22; (R1) 108.66; More..
USD/JPY’s break of 108.47 minor resistance suggests temporary bottoming at 107.77, ahead of 38.2% retracement of 104.45 to 109.72 at 107.70. The development also argue that price actions from 109.72 are merely a corrective pattern. Intraday bias is now back on the upside for 4 hour 55 EMA (now at 108.73). Sustained break will pave the way to retest 109.72 high. On the downside, firm break of 107.70 will pave the way to 106.48 cluster support (61.8% retracement at 106.46).
In the bigger picture, USD/JPY is staying in long term falling channel that started at 118.65 (Dec. 2016). Recovery from 104.45 also failed to sustain above 55 week EMA (now at 109.02). Overall outlook remains bearish and fall from 118.65 is in favor to extend through 104.45 low. This will now stay as the favored case as long as 109.72 resistance holds.