Daily Pivots: (S1) 105.40; (P) 105.57; (R1) 105.72;
Focus is back on 104.92 minor support with today’s sharp decline. Firm break there will indicate that rebound from 104.00 has completed. Intraday bias will be turned back to the downside for 104.00. Break there will resume larger down trend from 111.71. On the upside, though, break of 105.80 resistance will resume rebound form 104.00 to 106.94 resistance, to confirm completion of the near term down trend.
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 resistance should confirm completion of the down trend and turn outlook bullish for 118.65 and above.
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