Daily Pivots: (S1) 108.51; (P) 108.75; (R1) 109.02; More…
Focus is back on 108.49 minor support intact USD/JPY. Break will suggests that rebound from 106.78 has completed with three waves up to 109.31. Further fall would then be seen back to 106.78/107.21 support zone. On the upside, break of 100% projection of 106.78 to 108.99 from 107.21 at 109.42 will target 161.8% projection at 110.78.
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.
