Daily Pivots: (S1) 107.77; (P) 107.94; (R1) 108.08; More…
Intraday bias in USD/JPY is turned neutral with today’s recovery. On the downside, below 107.79 will resume the fall from 108.99 to retest 106.78 low first. Break will resume larger decline from 112.40. on the upside, break of 108.99 will resume the rebound from 106.78 to 110.67 resistance next.
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. In any case, break of 112.40 is needed to the first serious sign of medium term bullishness. Otherwise, further decline will remain in favor in case of rebound.
