Upside of USD/JPY’s Recommencement

The pair has formed a temporary minimum at 110.61. Trading became neutral. 112.41 resistance should bound upside of recommencement and lead to further fall. Following pivot points include: (S1) 110.70; (P) 111.01; (R1) 111.39.

Under 110.61, trading will turn up on the downside towards 108.81 support. The intact correction from 118.65 might be progressing. Breach of 108.81 will head towards 61.8% retracement of 98.97 to 118.65 at 106.48. Breach of 112.41 minor resistance will cancel the bearishness and 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.