USD/JPY’s Recoil Has Ended

The pair is sticking near the support of 112.88. Trading stays neutral. Sustained breach of 112.88 will indicate that the recoil from 108.81 has ended at 114.49 after there has been a rejection from the key short term resistance of 114.36. Following pivot points include: (S1) 112.73; (P) 113.35; (R1) 113.77.

The correction from 118.65 should expand. If she does, trading will turn up on the downside towards 55 day EMA. Strong breach of 114.36 resistance will suggest that corrective retreat from 118.65 has finished at 108.12. If that happens, another rally should align a repeat test of 118.65.

The lift from 98.97 keeps progressing. Breach of 118.65 will head towards a test on 125.85 maximum. Expansion of the long term uptrend from 75.56 is unlikely. Formation of a top around 125.85 will be closely watched.