Daily Pivots: (S1) 107.07; (P) 107.23; (R1) 107.37; More...
Focus is now on 106.79 support in USD/JPY with today’s steep decline. Break will indicate completion of the rebound from 106.07. Further fall would be seen to 106.07 and below to extend the corrective pattern from 111.71. On the upside, though, break of 108.16 will resume the rebound from 106.07 to 109.85 resistance instead.
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. The down trend could still extend 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.
