Completion of Correction in USD/JPY is Awaited

Pair’s trading stays neutral. Choppy breach of medium term channel resistance will suggest that correction from 118.65 has ended at 107.31. Following pivot points include: (S1) 112.34; (P) 112.88; (R1) 113.17.

Breach of 114.49 will indicate bullishness and align a test on 118.65 level. According to bearish divergence in 4 hour MACD, breach of support 112.31 will mark 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.