Daily Pivots: (S1) 108.69; (P) 109.21; (R1) 109.49; More..
USD/JPY’s pull back from 109.72 extends further lower but stays above 108.27 support. Rise from 104.45 is still mildly in favor to extend. On the upside, above 109.20 minor resistance will bring retest of 109.72 resistance first. However, firm break of 108.27 will indicate near term reversal and turn outlook bearish for 106.48 support.
In the bigger picture, strong support was seen from 104.62 again. Yet, there is no confirmation of medium term reversal. Corrective decline from 118.65 (Dec. 2016) could still extend lower. But in that case, we’d expect strong support above 98.97 (2016 low) to contain downside to bring rebound. Meanwhile, on the upside, break of 112.40 key resistance will be a strong sign of start of medium term up trend.