USD/JPY’s Recoil is Over
Pair's sharp fall as well as breach of 109.22 minor support points out ending of recoil from 108.27 at 110.47. Deeper decline from 114.73 keeps extending. Following pivot points include:(S1) 108.65; (P) 109.46; (R1) 109.94.
Trading turned up on the downside towards 108.27. Breach should prolong the medium term correction 118.65, pushing USD/JPY through 107.31 to fibonacci level of 106.48.
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.