USD/JPY fell below major levels earlier, but it's bounced
There are two massive levels on the USD/JPY chart.
1)The first is 108.13. That was the low so far this year, which was made in April.
2) The second level was the 61.8% retracement of the election-night low at 107.87. A break of that would portend a complete retracement to 101.20.
Both levels were breached for a few hours earlier today. The intraday low as 107.32, so it was a substantial break, not just a few pips for a moment. A true break would be a close on the weekly chart.
The good news for the bulls is that USD/JPY has bounced back. It's trading at 107.83 at the moment after climbing above 108.00. That's right around the critical zone.
Ideally, you don't want to see it close right on support. If it could bounce, that would be a sign of life.
Ultimately, it doesn't look good. Aside from the break today, US Treasury yields are at the lowest since November and the 10-year is well below support. So it's probably a matter of time before USD/JPY goes lower. How much time depends on how it closes today.
