USD/JPY’s Potential Upside Trading
The pair has recommenced due to extension of consolidation from 108.27 near term minimum. Trading remains neutral. Larger drop is likely if the resistance of 110.18 is present. Following pivot points include: (S1) 108.69; (P) 109.07; (R1) 109.54.
Breach of 108.27 level will push the decline towards further fibonacci support of 106.48, surpassing the 107.31 support. Breach of 110.18 will confirm short term reversal and trading will turn up on the upside towards 111.47 resistance.
The corrective pattern from 118.65 has ended at 107.31. USD/JPY might decline to 61.8% retracement of 98.97 to 118.65 at 106.48, which will restrain downside and cause restoration of increase from 98.97. Firm breach of 106.48 will push the pair through 98.97 and thus the corrective drop from 125.85 will extend.