Pair’s trading is still on the downside. The decline from 114.73, which is also a piece of the pattern from 118.65 maximum, has prolonged. The fibonacci level of 106.48 should be aligned in the near term. Following pivot points include: (S1) 108.10; (P) 108.70; (R1) 109.36.
Breach of 110.47 resistance should draw short term reversal. If USD/JPY recommences, the forecast remains bearish.
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.