USD/JPY’s Rejection

Pair’s trading condition is neutral. 112.88 support is in the spotlight. Strong breach of 112.88 will mean 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) 112.92; (P) 113.22; (R1) 113.58.

The correction from 118.65 is expanding. Tading should turn up on the downside towards 55 day EMA. Firm breach of 114.36 resistance will argue 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.