USD/JPY’s Deeper Reduction
Pair’s trading tone is neutral. Deeper reduction from 114.73 keeps extending. Breach of 108.27 will prolong the medium term correction from 118.65.Following pivot points include:(S1) 108.78; (P) 109.22; (R1) 109.98.
USD/JPY should surpass 107.31 and reach 106.48 fibonacci level. Over 110.47, trading will turn up on the upside and the pair will strongly recoil.
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.