USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 109.09; (P) 109.37; (R1) 109.57; More..

Intraday bias in USD/JPY remains on the downside at this point. Current fall from 110.28 would target a test on 107.65 support. Break will indicate completion of whole rebound from 104.45 and turn outlook bearish. On the upside, above 109.65 minor resistance will turn bias back to the upside for retesting 110.28 high.

In the bigger picture, there is no change in the bearish outlook yet in spite of the rebound from 104.45. The pair is staying in long term falling channel that started at 118.65 (Dec. 2016). Rise form 104.45 is seen as a correction and the 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.