Daily Pivots: (S1) 106.79; (P) 107.34; (R1) 107.68; More..
Intraday bias in USD/JPY remains on the downside at this point. With 107.08 support taken out, further fall should be seen to 105.98 next. At this point, the pattern from 111.71 is seen as a correction. We’d expect strong support from 61.8% retracement of 101.18 to 111.71 at 105.20 to contain downside to bring rebound. On the upside, above 107.87 minor resistance will turn intraday bias neutral first.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec2016). Hence, there is no clear indication of trend reversal yet. Break of 105.98 support could extend the down trend through 101.18 low. However, sustained break of 112.22 should confirm completion of the down trend and turn outlook bullish for 118.65 and above.
