Daily Pivots: (S1) 103.99; (P) 104.67; (R1) 105.18; More...
USD/JPY drops to as low as 130.60 so far today. The strong break of 104.00 support indicates resumption of whole decline form 111.71. Intraday bias is now on the downside for 100% projection of 106.10 to 104.02 from 105.34 at 103.26. Break will target 161.8% projection at 101.97. On the upside, break of 105.34 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain 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. On the upside, break of 106.10 resistance is needed to be the first signal of medium term reversal. Otherwise, outlook will remain bearish.
