Daily Pivots: (S1) 109.09; (P) 109.37; (R1) 109.57; More..
USD/JPY drops to as low as 108.73 today as fall from 110.28 is in progress. With 55 day EMA taken out, next target will be 107.85 support. On the upside, above 109.65 minor resistance will turn bias back to the upside for retesting 110.28 high.
In the bigger picture, there is no change in the bearish outlook yet in spite of the rebound from 104.45. The pair is staying in long term falling channel that started at 118.65 (Dec. 2016). Rise form 104.45 is seen as a correction and the down trend could still extend through 104.45 low. However, sustained break of the channel resistance will be an important sign of bullish reversal and target 114.54 resistance for confirmation.
