Bullish convergence in USD/JPY
Break of 106.37 minor resistance indicates that a short term bottom has been formed at 105.24. Pair’s trading became neutral to consolidation. If 107.67 resistance is present, short term forecast stays bearish. Deeper fall from 118.65 should be progressing. Following pivot points include: (S1) 105.61; (P) 105.92; (R1) 106.50.
Under 105.24, USD/JPY will align 100% projection of 118.65 to 108.12 from 114.73 at 104.20. Choppy breach in that zone will head towards the key support of 98.97 and lower. According to bullish convergence in 4 hour MACD, breach of 107.67 will suggest temporary bottoming. Larger recoil should align 55 day EMA.
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.