USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 109.67; (P) 109.95; (R1) 110.13; More..

Intraday bias in USD/JPY stays neutral first. On the downside, break of 109.76 should confirm short term topping at 110.28. Intraday bias will be turned to the downside for 55 day EMA (now at 109.10). On the upside, break of 110.28 will resume larger rise from 104.45 to 100% projection of 106.48 to 109.72 from 107.65 at 110.89.

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.