Daily Pivots: (S1) 106.82; (P) 107.12; (R1) 107.45; More…
A temporary low is in place at 106.78 in USD/JPY and intraday bias is turned neutral. Some consolidations would be seen first but upside of recovery should be limited buy 108.80 resistance to bring fall resumption. On the downside, break of 106.78 will extend the decline from 112.40 to retest 104.69 low.
In the bigger picture, decline from 118.65 (Dec 2016) is still in progress, with the pair staying inside long term falling channel. Break of 104.62 will target 100% projection of 118.65 to 104.62 from 114.54 at 100.51. For now, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound.
