USD/JPY’s Near Term Top
Pair’s trading tone is neutral towards consolidation under the near term top of 113.25. Another increase is expected if 111.46 minor support is present. Strong breach of medium term channel resistance will confirm that correction from 118.65 has finished at 107.31. Following pivot points include: (S1) 112.20; (P) 112.47; (R1) 112.72.
Breach of 114.49 will indicate bullish sentiment and align a test on 118.65 level. According to bearish divergence in 4 hour MACD, breach of 111.46 support will point out rejection from the channel resistance and trading will turn up on the downside.
The increase from 98.97 is viewed as a part of corrective pattern from 125.85 and it’s resuming. If 114.49 resistance stands, medium term prognosis will remain bearish. Breach of 114.49 might head towards a repeat test on 125.85 maximum.