Daily Pivots: (S1) 107.61; (P) 107.73; (R1) 107.97; More…
Intraday bias in USD/JPY remains on the upside at this point. Rebound from 104.45 is still in progress for 109.31 key resistance. We’d continue to look for topping sign as it approaches this 109.31 resistance. On the downside, break of 107.19 minor support will turn bias back to the downside. However, decisive break of 109.31 will carry larger bullish implication.
In the bigger picture, decline from 118.65 (Dec 2016) is still in progress and the pair is staying well inside long term falling channel. Firm break of 104.69 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. However, firm break of 109.31 will be the first sign of medium term reversal and bring stronger rise to 112.40 resistance for confirmation.
