Daily Pivots: (S1) 106.52; (P) 107.53; (R1) 108.11; More..
Intraday bias in USD/JPY remains on the downside at this point. As noted before, whole rise form 104.45 has completed after rejection by 112.40 resistance. Fall from 112.22 should target a test on 104.45 low. On the upside, above 108.57 minor resistance will turn bias neutral and bring consolidations, before staging another fall.
In the bigger picture, current steep decline and rejection by 112.40 resistance mixes up the medium term outlook again. Sustained break of 108.30 support will argue that larger fall from 118.65 (Dec 2016) hasn’t completed. Further fall could be seen through 104.45 low. Nevertheless, break of 112.40 resistance will revive the case of bullish reversal and target 114.54 key resistance for confirmation.
