Daily Pivots: (S1) 106.86; (P) 107.37; (R1) 107.70; More…
USD/JPY’s break of 106.68 support now suggests that rebound from 104.45 has completed at 108.47, with a double top pattern. Intraday bias is turned back to the downside for retesting 104.45 low. On the upside, above 107.29 minor resistance will turn intraday bias neutral first. But risk will remain on the downside as long as 108.47 resistance holds.
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.
