Daily Pivots: (S1) 108.93; (P) 109.39; (R1) 109.78; More…

USD/JPY dropped to as low as 109.02 but quickly recovered. Still, with 110.04 resistance intact, further decline is expected. As noted before, whole rebound from 104.69 has completed at 112.40 already. Current fall from 112.40 should extend to retest 104.69 low. Nevertheless, break of 110.04 minor resistance will indicate short term bottom. Lengthier consolidation could be seen before another decline.

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In the bigger picture, USD/JPY is staying inside falling channel from 118.65. Currently 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.

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