USD/JPY’s Restricted Recoil
Pair’s recoil from 105.24 hit the 106.93 maximum. It is restricted under the resistance of 107.67. Trading stays neutral. Choppy breach of 107/67 will suggest short term reversal, basing on bullish convergence in 4 hour MACD. Following pivot points include: (S1) 105.95; (P) 106.13; (R1) 106.37.
The prognosis might become bullish to 110.47 resistance. Further decrease is expected. Breach of 105.24 will extend deeper fall from 118.65 to 100% projection of 118.65 to 108.12 from 114.73 at 104.20 next.
In the bigger picture, current development argues that the corrective pattern from 118.65 is extending. The solid break of 61.8% retracement of 98.97 to 118.65 at 106.48 now suggests that the pattern from 125.85 high is possibly extending. Deeper fall could be seen through 98.97 key support (2016 low). This bearish case will now be favored as long as 110.47 resistance holds.