Daily Pivots: (S1) 106.64; (P) 106.94; (R1) 107.16; More...
USD/JPY drops to as low as 106.36 so far and break of 106.63 suggests resumption of fall from 108.16. Intraday bias is back on the downside for 106.07 support. Break there will extend the corrective pattern from 111.71 to 61.8% retracement of 101.18 to 111.71 at 105.20. On the upside, break of 107.54 resistance is needed to indicate completion of the decline. Otherwise, outlook will remain cautiously bearish in case of recovery.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec 2016). Hence, there is no clear indication of trend reversal yet. The down trend could still extend 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.
