USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 108.86; (P) 109.21; (R1) 109.86; More..

Intraday bias in USD/JPY remains on the upside for 110.28 resistance. Break there will resume larger rebound from 104.45. Break there will target medium term channel resistance at 111.23. On the downside, break of 109.30 minor support will turn bias back to the downside for 108.30 support instead.

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.