USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 109.26; (P) 109.55; (R1) 109.98; More…

USD/JPY’s rally is still in progress and intraday bias remains on the upside. Current rise from 102.58 should target long term channel resistance at 110.00. Decisive break there will carry larger bullish implication and target 111.71 resistance next. On the downside, break of 108.40 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.

In the bigger picture, focus is now back on long term channel resistance (now at 110.00). 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.