Daily Pivots: (S1) 106.63; (P) 107.97; (R1) 108.69; More…
USD/JPY drops to as low as 106.60 so far today. Break of 106.78 suggests resumption of fall from 112.40. Intraday bias stays on the downside for next target of 61.8% projection of 112.40 to 106.78 from 109.31 at 105.83 first, then 104.69 low. On the upside, above 107.56 minor resistance will turn intraday bias neutral and bring consolidations. But upside of recovery should be limited below 109.31 resistance to bring fall resumption.
In the bigger picture, decline from 118.65 (Dec 2016) not completed yet, with the pair staying inside long term falling channel. Break of 104.62 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. In any case, break of 112.40 is needed to the first serious sign of medium term bullishness. Otherwise, further decline will remain in favor in case of rebound.
