Daily Pivots: (S1) 108.11; (P) 108.68; (R1) 109.70; More..
USD/JPY rises to as high as 109.28 so far. Break of 108.86 resistance suggests that correction form 109.72 has completed at 107.65 after hitting 38.2% retracement of 104.45 to 109.72 at 107.70. Intraday bias stays on the upside for 109.72 resistance next. Firm break there will resume whole rise from 104.45 to channel resistance (now at 111.51). On the downside, in case of another fall, we’d expect strong support form 107.70 to contain downside.
In the bigger picture, USD/JPY is staying in long term falling channel that started at 118.65 (Dec. 2016). Recovery from 104.45 also failed to sustain above 55 week EMA (now at 109.02). Overall outlook remains bearish and fall from 118.65 is in favor to extend through 104.45 low. This will now stay as the favored case as long as 109.72 resistance holds.
