Daily Pivots: (S1) 107.39; (P) 107.97; (R1) 108.32; More..
USD/JPY drops to as low as 107.38 so far today and intraday bias remains on the downside. Fall from 109.85 is seen as the third leg of the pattern from 111.71. Break of 107.08 would target a test on 105.98 support. On the upside, above 107.42 minor resistance will turn intraday bias neutral first. But risk will stay mildly on the downside as long as 109.85 resistance holds.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec2016). Hence, there is clear indication of trend reversal yet. Break of 105.98 support would extend the down trend through 101.18 low. However, sustained break of 112.22 should confirm completion of the down trend and turn outlook bullish for 118.65 and above.
