Daily Pivots: (S1) 106.06; (P) 106.37; (R1) 106.82; More...
USD/JPY’s break of 106.47 suggests resumption of rebound from 104.18. We’re also holding on the bullish case that corrective fall from 111.71 has completed with three waves down to 104.18, after missing 100% projection of 111.71 to 105.98 from 109.85 at 104.12. Intraday bias is back on the upside for 108.16 resistance. Firm break will will target 109.85 and above. This will now remain the favored case as long as 105.30 support holds, even in case of retreat.
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.
