Short Term Channel Resistance in USD/JPY

Pair’s rally is extending. It has broken 111.70 resistance. Trading stays on the upside towards short term channel resistance. Decisive breach in that zone argues that the entire retreat from 118.65 has finished at 108.12. Following pivot points include: (S1) 110.96; (P) 111.27; (R1) 111.84.

Another increase might head towards 114.36 resistance. Under 110.63 minor support trading will turn up in the neutral position. Breach of 108.81 will push the drop from 118.65 through the minimum of 108.12. Then, it will end.

Price behavior from 125.85 high is considered as a correction. Actual movement proves that it keeps progressing. If deeper fall occurs, 61.8% retracement of 75.56 to 125.85 at 94.77 must fill the downside and cause recoil. Lift from 75.56 is likely to expand after conclusion of the correction.