Progression USD/JPY’s Corrective Pattern
Pair’s trading tone is neutral. The consolidation from 108.27 keeps extending. Short term forecast remains bearish and bigger decline is possible if 110.18 resistance is present. Following pivot points include: (S1) 109.07; (P) 109.41; (R1) 109.73.
Breach of 108.27 level will prolong the fall 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 is progressing. 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.