Daily Pivots: (S1) 105.49; (P) 106.62; (R1) 107.26; More..
USD/JPY’s fall from 112.22 extends to as low as 105.75 so far today. Intraday bias remains on the downside for retesting 104.45 low. Firm break there will resume larger fall from 118.65. On the upside, break of 107.74 minor resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, current steep decline and rejection by 112.40 resistance mixes up the medium term outlook again. Sustained break of 108.30 support will argue that larger fall from 118.65 (Dec 2016) hasn’t completed. Further fall could be seen through 104.45 low to 98.97 key support (2016 low). Nevertheless, break of 112.40 resistance will revive the case of bullish reversal and target 114.54 key resistance for confirmation.