Daily Pivots: (S1) 106.52; (P) 107.21; (R1) 107.69; More…
Intraday bias in USD/JPY remains on the downside at this point. Right now, we’d still look for strong support around 106.48 to bring rebound. But break of 107.89 minor resistance is needed to be the first sign of short term bottoming. Otherwise, outlook will stay bearish. Firm break of 106.48 will extend medium term fall from 118.65 to 100% projection of 118.65 to 108.12 from 114.73 at 104.20 next.
In the bigger picture, current development argues that the corrective pattern from 118.65 is extending. There is risk of dropping further to 61.8% retracement of 98.97 to 118.65 at 106.48. But this level should provide strong support to contain downside and bring resumption of rise from 98.97. However, sustained break of 106.48 will now likely send USD/JPY through 98.97 to resume the corrective fall from 125.85 (2015 high).
