USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 109.40; (P) 109.55; (R1) 109.65; More..

USD/JPY rises to as high as 109.92 so far today. break of 109.72 resistance suggests resumption of whole rise form 104.45. Intraday bias is back on the upside for 100% projection of 106.48 to 109.72 from 107.65 at 110.89 next. On the downside, below 109.43 minor support will turn intraday bias neutral and bring consolidations first, before staging another rally.

In the bigger picture, USD/JPY is staying in long term falling channel that started at 118.65 (Dec. 2016). There is no clear indication of trend reversal yet. Hence, rise from 104.45 is seen as a correction and down trend could still extend through 104.45 low. However, sustained break of the channel resistance will be an important sign of bullish reversal and target 114.54 resistance for confirmation.