Daily Pivots: (S1) 104.73; (P) 105.40; (R1) 106.60; More...
Focus stays on 106.07 support turned resistance in USD/JPY. Sustained break there will suggest near term reversal. That is, whole decline from 111.71 has completed with three waves down to 104.18, just missed 100% projection of 111.71 to 105.98 from 109.85 at 104.12. In this case, stronger rise would be seen to 108.16 resistance next.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). 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.
