USD/JPY’s Drop is Extending

Pair's drop from 114.49 is extending and facing 111.98 level. Trading stays on the downside towards larger fall. Following pivot points include: (S1) 112.35; (P) 112.60; (R1) 112.88.

The rejection from 114.36 resistance indicates that entire correction from 118.65 might be expanding. Decisive breach of 55 day EMA will head towards 108.12 and lower. Over 113.57 minor resistance, 114.49 resistance will be in the spotlight.

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. If decline from 118.65 moves downwards, 61.8% retracement of 98.97 to 118.65 at 106.48 should restrain the downside and cause recoil.