USD/JPY’s Bearish Prognosis
Pair’s trading tone is neutral. Short term forecast stays bearish and another decline is expected if 107.67 resistance holds. Breach of 105.24 will extend deeper drop from 118.65 to 100% projection of 118.65 to hit 108.12 from 114.73 at 104.20. Following pivot points include: (S1) 105.60; (P) 105.91; (R1) 106.37.
Choppy breach in that area 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.