Daily Pivots: (S1) 107.89; (P) 108.79; (R1) 109.34; More..
USD/JPY’s fall from 109.85 extended to as low as 107.91 today. Break of 108.08 resistance turned support argue that rebound from 105.98 has completed with three waves up to 109.85. The development argues that the pattern from 111.71 is possibly in the third leg. Intraday bias is back to the downside for 107.08. Break will target 105.98. For now, risk will stay mildly on the downside as long as 109.85 resistance holds.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec2016). Hence, there is clear indication of trend reversal yet. Break of 105.98 support would extend the down trend 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.
