Daily Pivots: (S1) 109.42; (P) 109.68; (R1) 109.88; More…
USD/JPY drops to as low as 108.87 so far today. Break of 109.02 support indicates resumption of fall from 112.40. Intraday bias is back on the downside for 61.8% retracement of 104.69 to 112.40 at 107.63 next. Sustained trading below 107.63 will pave the way to retest 104.69 low. On the upside, break of 109.92 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, USD/JPY is staying inside falling channel from 118.65. Current development suggests that rebound from 104.69 is only a corrective move. And fall from 118.65 is not completed yet. Decisive break of 104.69 will extend the down trend towards 98.97 support (2016 low). For now, we’d expect strong support above there to bring rebound.
