USD/JPY is edging lower, dancing above the 108.10 level after North Korea fired a missile over Japan. The team at Bank of America Merrill Lynch examines the weekly Ichimoku cloud and lists the next levels to watch out for.

Here is their view, courtesy of eFXnews:

Bank of America Merrill Lynch FX  Strategy Research notes that while USD/JPY has been under pressure as of late, it has not closed below the weekly Ichimoku cloud of 108.84.

“A breakdown should lead USDJPY to the 61.8% retracement of the Brexit low to Trump high of 106.52.

Below that are pivot levels at 105.30 and 104.30,” BofAML argues.