Daily Pivots: (S1) 106.88; (P) 107.15; (R1) 107.45; More...
USD/JPY is still bounded in right range below 107.76 temporary top and intraday bias remains neutral. We’re favoring the case that corrective fall from 111.71 has already completed at 105.98. Further rally is expected and break of 107.76 will target 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.
