Daily Pivots: (S1) 106.33; (P) 106.68; (R1) 106.93; More...
USD/JPY’s retreat from 107.05 extends lower today but stays above 105.30 support. Intraday bias remains neutral first and further rally is in favor. We’d holding on to the bullish case. That is, corrective fall from 111.71 has completed with three waves down to 104.18, after missing 100% projection of 111.71 to 105.98 from 109.85 at 104.12. On the upside, above 107.05 will target 108.16 resistance next. However, break of 105.30 support will turn bias back to the downside for 104.18 low instead.
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.
