Daily Pivots: (S1) 107.36; (P) 107.73; (R1) 107.92; More…
USD/JPY’s break of 107.45 minor support suggests that rebound from 104.45 has completed at 108.47 already. Intraday bias is turned back to the downside for 106.68 support first. Break will confirm and target for retest of 104.45 low. On the upside, break of 108.47 will extend the rebound towards 109.31 key resistance. However, before that, risk will now stay on the downside in case of recovery.
In the bigger picture, decline from 118.65 (Dec 2016) is still in progress and the pair is staying well inside long term falling channel. Firm break of 104.69 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. However, firm break of 109.31 will be the first sign of medium term reversal and bring stronger rise to 112.40 resistance for confirmation.
