Daily Pivots: (S1) 106.74; (P) 106.90; (R1) 107.03; More...
USD/JPY is still bounded in consolidation from 106.57 and intraday bias remains neutral first. Further decline is expected with 107.64 resistance intact. Break of 106.57 will extend the fall from 109.85 to 105.98 and below. Though, downside should be contained by 61.8% retracement of 101.18 to 111.71 at 105.20 to bring rebound. On the upside, break of 107.64 will turn bias back to the upside for 109.85 resistance instead.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec2016). Hence, there is no clear indication of trend reversal yet. Break of 105.98 support could 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.
