USD/JPY’s Short Term Minimum

Pair’s trading tone is neutral. USD/JPY is holding inside of consolidation over the short term minimum of 110.61. If the whole 112.41 level is present, another drop is awaited. Following pivot points include: (S1) 110.79; (P) 111.25; (R1) 111.72.

Under 110.61, the pair will head towards 108.81. Breach in that spot will enlarge the intact correction from 118.65 and align 61.8% retracement of 98.97 to 118.65 at 106.48. Breach of 112.41 will annul 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.