Daily Pivots: (S1) 105.75; (P) 106.20; (R1) 106.46; More...
As the fall from 107.05 accelerates, focus is now back on 105.30 support in USD/JPY. Firm break there will firstly suggests that rebound from 104.18 has completed. More importantly, that would suggest that decline from 111.71 isn’t completed. Intraday bias will be turned back to the downside for retesting 104.18 low. On the upside, though, break of 107.05 resistance will revive the case of bullish reversal and turn bias back to the upside for 108.16 resistance.
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.
