USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 106.06; (P) 106.37; (R1) 106.82;

Intraday bias in USD/JPY remains on the upside as rise from 104.18 is in progress. Corrective fall from 111.71 should have completed with three waves down to 104.18, after missing 100% projection of 111.71 to 105.98 from 109.85 at 104.12. Further rise should be seen to 108.16 resistance. Firm break will target 109.85 and above. This will now remain the favored case as long as 105.30 support holds, even in case of retreat.

In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). Hence, there is no clear indication of trend reversal yet. The down trend could still extend through 101.18 low. However, sustained break of 112.22 should confirm completion of the down trend and turn outlook bullish for 118.65 and above.