Daily Pivots: (S1) 106.82; (P) 107.27; (R1) 107.78; More..
USD/JPY’s rebound from 101.18 extends higher and sustained break of 61.8% retracement of 112.22 to 101.18 at 108.00 suggests completion of fall from 112.22. Intraday bias is now on the upside for retesting 112.22 key resistance next. On the downside, break of 105.14 support will turn bias back to the downside for retesting 101.18 low instead.
In the bigger picture, fall from 118.65 (Dec. 2016) is still in progress. It’s seen as part of a larger consolidative pattern from 125.85 (2015 high). Such decline could could extend through 98.97 (2016 low). For now, risk will remain on the downside as long as 112.22 resistance holds, even in case of rebound. However, break of 112.22 will be a strong sign on medium term bullish reversal.
