Daily Pivots: (S1) 106.22; (P) 106.89; (R1) 107.28; More…
USD/JPY’s decline continues today and reaches as low as 105.78 so far. 61.8% projection of 112.40 to 106.78 from 109.31 at 105.83 is breached but there is no sign of bottoming yet. Intraday bias stays on the downside at this point. Sustained break of 105.83 will pave the way to retest 104.69 low. On the upside, break of 106.68 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another fall.
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.
