USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 108.41; (P) 108.60; (R1) 108.89; More..

Current development suggests that a temporary low is formed at 108.30 in USD/JPY. Intraday bias is turned neutral first with focus back on 109.26 minor resistance. Break will suggest that pull back from 110.28 has completed. More importantly, larger rebound from 104.45 is still in progress. Intraday bias is back on the upside for retesting 110.28 first. on the downside, break of 108.30 will resume the fall to 107.65 support next.

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 from 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.