Daily Pivots: (S1) 107.99; (P) 108.13; (R1) 108.33; More…
USD/JPY’s solid break of 108.37 resistance suggests that pull back from 108.99 has completed. And, rebound from 106.78 is likely resuming. Intraday bias is back on the upside for 108.99 resistance first. Break will confirm and target 100% projection of 106.78 to 108.99 from 107.21 at 109.42 and then 161.8% projection at 110.78. On the downside, below 107.93 minor support will turn bias back to the downside instead.
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.
