Daily Pivots: (S1) 105.58; (P) 106.24; (R1) 106.80; More...

Intraday bias in USD/JPY remains on the downside at this point. Break of 61.8% retracement of 101.18 to 111.71 at 105.20 will target 100% projection of 111.71 to 105.98 from 109.85 at 104.12 next. On the upside, above 105.66 minor resistance will turn intraday bias neutral first. But recovery should be limited by 106.63 support turned resistance to bring another fall.

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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.

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