USD/JPY's Corrective Pattern

Technical Reports

Pair’s consolidation from 105.54 continues to expand. Trading tone is neutral. The forecast stays bearish and larger decline is possible, if the whole 108.27 resistance is present. Breach of 105.54 will enlarge the deeper fall from 118.65 and head towards 100% projection of 118.65 to 108.12 from 114.73 at 104.20. Following pivot points include: (S1) 106.48; (P) 106.83; (R1) 107.28.

Breach of 108.27 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.