USD/JPY’s Consolidation is Resuming
Pair’s trading tone is neutral. Consolidation from 105.54 is resuming. If the whole 108.27 resistance is present, the forecast stays bearish and bigger decline is anticipated. Following pivot points include: (S1) 106.31; (P) 107.03; (R1) 107.48.
Breach of 105.54 will prolong the deeper drop from 118.65 and align 100% projection of 118.65 to 108.12 from 114.73 at 104.20. Breach of 107.72 will suggest short term reversal and head towards 110.47 resistance.
The corrective pattern from 118.65 is progressing. Strong breach of 61.8% retracement of 98.97 to 118.65 at 106.48 indicates extension of the pattern from 125.85 maximum. Larger decrease should surpass the key support of 98.97. If 110.47 resistance is present, the forecast stays bearish.