Daily Pivots: (S1) 107.30; (P) 107.66; (R1) 108.29; More…
Despite strong recovery from 106.48, USD/JPY is limited below 108.47 resistance at this point. Intraday bias stays neutral first. On the downside, break of 106.48 will target a retest on 104.45 low. On the upside, break of 108.47 will resume the rebound from 104.45 for 109.31 key resistance.
In the bigger picture, decline from 118.65 (Dec 2016) is still in progress and the pair is staying well inside long term falling channel. Firm break of 104.69 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. However, firm break of 109.31 will be the first sign of medium term reversal and bring stronger rise to 112.40 resistance for confirmation.
