Daily Pivots: (S1) 108.51; (P) 108.72; (R1) 109.14; More..
Intraday bias in USD/JPY is turned neutral with today retreat. Consolidation should be relatively brief with 108.08 minor support intact. Break of 109.22 will resume recent rally to channel resistance at 110.02 next. Decisive break there will carry larger bullish implications. Break of 108.08 will bring deeper correction. But outlook will stay bullish as long as 106.21 resistance turned support holds.
In the bigger picture, focus is now back on long term channel resistance (now at 110.02). Sustained break there will indicate that the down trend from 118.65 (Dec 2016) has completed. Further break of 112.22 resistance will confirm this bullish case and target 118.65 next. However, rejection by the channel resistance will keep medium term outlook bearish.