Daily Pivots: (S1) 109.26; (P) 109.48; (R1) 109.81; More…
USD/JPY’s recovery from 109.15 extends higher today and further rise might be seen. But it’s seen as in consolidation pattern from 109.02. Thus, upside should be limited by 110.67 resistance to bring fall resumption eventually. On the downside, break of 109.02 will resume the fall from 112.40 and target 61.8% retracement of 104.69 to 112.40 at 107.63 next. Nevertheless, firm break of 110.67 will argue that fall from 112.40 could be completed and turn focus back to this resistance.
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.
