Daily Pivots: (S1) 105.85; (P) 106.53; (R1) 106.90; More…
USD/JPY’s break of 106.37 minor support suggests rebound from 105.54 has completed. Intraday bias is turned back to the downside. Break of 105.54 will resume larger decline from 118.65 and target 100% projection of 118.65 to 108.12 from 114.73 at 104.20 next. In any case, break of 108.27 resistance is needed to indicate trend reversal. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, current development argues that the corrective pattern from 118.65 is extending. The solid break of 61.8% retracement of 98.97 to 118.65 at 106.48 now suggests that the pattern from 125.85 high is possibly extending. Deeper fall could be seen through 98.97 key support (2016 low). This bearish case will now be favored as long as 110.47 resistance holds.
