Daily Pivots: (S1) 104.96; (P) 105.54; (R1) 105.95; More...
USD/JPY’s decline resumes after brief recovery and intraday bias is back on the downside. Current fall is part of the decline from 111.71 and should target 100% projection of 111.71 to 105.98 from 109.85 at 104.12 next. On the upside, above 105.68 minor resistance will turn intraday bias neutral again and bring consolidation. But overall, near term outlook will stay bearish as long as 106.63 support turned resistance, in case of recovery.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec 2016). Hence, there is no clear indication of trend reversal yet. The down trend could still extend 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.
