Daily Pivots: (S1) 108.21; (P) 108.54; (R1) 108.87; More..
Outlook in USD/JPY remains unchanged. Rebound from 104.45 should have completed at 109.72. Intraday bias remains on the downside for 38.2% retracement of 104.45 to 109.72 at 107.70 first. Break will bring deeper fall to 106.48 cluster support (61.8% retracement at 106.46). On the upside, above 108.47 minor resistance will turn intraday bias neutral first.
In the bigger picture, there is no confirmation of medium term reversal. Corrective decline from 118.65 (Dec. 2016) could still extend lower. But in that case, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. Meanwhile, on the upside, break of 112.40 key resistance will be a strong sign of start of medium term up trend.