Daily Pivots: (S1) 107.07; (P) 107.23; (R1) 107.37; More...
USD/JPY’s break of 106.79 suggests that rebound from 106.07 has completed at 108.16. Also, the larger pattern from 111.71 is extending with another falling leg. Intraday bias is back on the downside for 105.98/106.07 support zone first. Break will target 61.8% retracement of 101.18 to 111.71 at 105.20. On the upside, break of 107.24 minor resistance will turn intraday bias neutral first.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec2016). 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.
