Daily Pivots: (S1) 105.69; (P) 106.09; (R1) 106.67; More…
Intraday bias in USD/JPY remains neutral at this point as consolidation from 105.52 temporary low might extend. In case of another recovery upside should be limited below 109.31 resistance to bring fall resumption. On the downside, break of 105.52 will target 104.69 low next.
In the bigger picture, decline from 118.65 (Dec 2016) not completed yet, with the pair staying inside 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. In any case, break of 112.40 is needed to the first serious sign of medium term bullishness. Otherwise, further decline will remain in favor in case of rebound.
