USD/JPY Daily Outlook

Daily Pivots: (S1) 105.92; (P) 106.16; (R1) 106.48; More..

Break of 106.21 resistance suggests resumption of whole rebound from 102.58. Intraday bias is back on the upside. Further rally could be seen to 61.8% retracement of 111.71 to 102.58 at 108.22. However, break of 104.91 support will argue that the rebound has completed, and turn near term outlook bearish.

In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016), and there is no clear indication of trend reversal yet. Though, sustained trading above 55 week EMA (now at 105.84) will be the first sign of reversal and turn focus to channel resistance (now at 110.15).