Daily Pivots: (S1) 106.89; (P) 107.13; (R1) 107.48; More...
USD/JPY is extending the retreat from 107.76 temporary top and intraday bias stays neutral first. Outlook is unchanged that corrective fall from 111.71 should have completed with three waves down to 105.98. Further rise is expected as long as 105.98 support holds. On the upside, break of 107.76 will turn bias back to the upside for 109.38 resistance first. However, break of 105.98 will dampen our bullish view and bring deeper decline.
In the bigger picture, at this point, whole decline from 118.65 (Dec 2016) continues to display a corrective look, with well channeling. There is no clear sign of completion yet. Break of 101.18 will target 98.97 (2016 low). Meanwhile, sustained break of 112.22 should confirm completion of the decline and turn outlook bullish for 118.65 and above.
