USD/JPY's Recoil is Over
Pair's breach of 106.37 minor support confirms conclusion of recoil from 105.54. Trading got back to the downside. Breach of 105.54 will extend deeper drop 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) 105.85; (P) 106.53; (R1) 106.90.
Breach of 108.27 resistance will suggest trend reversal. Even if USD/JPY recommences, prognosis stays bearish.
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.