Daily Pivots: (S1) 108.46; (P) 108.74; (R1) 109.09; More…
USD/JPY’s rebound from 108.10 extends higher and focus is now back to 109.82 resistance. Break there will indicate completion of the pull back from 113.39. And that will revive the bullish case that rise from 104.62 is still in progress. On the downside, though, break of 108.10 will extend the fall from 108.10 to 61.8% retracement of 104.62 to 111.39 at 107.20 instead.
In the bigger picture, USD/JPY remains bounded in medium term falling channel from 118.65 (2016 high). Current deeper than expected fall from 111.39 argues that fall from 118.65 is not finished. Break of 104.62 low would target 98.97 or even below. Though, break of 111.39 will revive the case that fall from 118.65 has completed and turn focus to 114.73 for confirmation.
