Daily Pivots: (S1) 108.51; (P) 108.75; (R1) 109.02; More…
USD/JPY’s break of 108.99 indicates resumption of rebound from 106.78. Intraday bias is turned back to the upside for 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, break of 108.49 minor support will turn bias back to the downside for 107.21 support instead.
In the bigger picture, decline from 118.65 (Dec 2016) not completed yet, 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.
