USD/JPY’s Larger Recoil
Pair’s trading character is neutral. Deeper fall from 114.73 is expanding. Breach of 108.27 will prolong the medium term correction from 118.65, pushing USD/JPY through 107.31 towards fibonacci level of 106.48. Following pivot points include: (S1) 108.92; (P) 109.32; (R1) 109.72.
Over 110.47, trading will turn up on the upside and there would be a larger recoil in the pair.
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.