USD/JPY’s Sideway Trading

The pair has grown to 111.78 but at this point trading is sideway. Trading tone is neutral. If the entire 110.63 minor support is present, another increase is expected. Over 111.78, USD/JPY will head towards a channel resistance.

Sharp breach in that area will indicate that the intact retreat from 118.65 has finished at 108.12. If that happens, another increase must head towards 114.36 resistance. Breach of 110.63 will move trading to the downside towards 108.81.

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.

More prospectively, the increase from 75.56 long term bottom in direction to 125.85 medium term top is considered as an impulsive action. Price behavior from 125.85 is considered as a correction, that could be expanding. Up trend from 75.56 is projected to prolong at a later phase towards level higher than 135.20/147.68 resistance zone.