USD/JPY’s Bearish Divergence
Pair’s consolidative trading in a limited diapason under the short term top of 113.25 prevails. Trading is still neutral. Another surge is possible if 111.46 minor support stands. Firm breach of medium term channel resistance will argue that correction from 118.65 has concluded at 107.31. Following pivot points include: (S1) 112.42; (P) 112.74; (R1) 113.06.
Breach of 114.49 will suggest 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.