Daily Pivots: (S1) 107.87; (P) 108.12; (R1) 108.40; More…
No change in USD/JPY’s outlook. While it’s losing downside momentum as seen in 4 hour MACD there is no sign of bottoming yet. Further decline should be seen and sustained break of 61.8% retracement of 104.69 to 112.40 at 107.63 will pave the way back to 104.62/9 key support zone. Though, break of 109.02 support turned resistance will indicate short term bottoming and bring lengthier consolidations first.
In the bigger picture, decline from 118.65 (Dec 2016) is still in progress, with the pair staying indicate long term falling channel. Break of 104.62 will target 100% projection of 118.65 to 104.62 from 114.54 at 100.51. For now, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound.
