Progression of USD/JPY’s Consolidation
Pair’s trading stays neutral. The consolidation from 104.62 is progressing. Short term forecast remains bearish and another decrease is awaited if the whole resistance of 106.63 holds. Following pivot points include: (S1) 105.12; (P) 105.51; (R1) 105.71.
Breach of 104.62 will prolong deeper drop from the projection level of 104.20. Firm breach in that zone will align 98.97. Breach of 106.63 will suggest near term bottoming and trading will turn up on the upside to firmer recoil.
Medium term downtrend from the 118.65 maximum keeps expanding. Downside impulse is getting stronger and the entire corrective pattern from 125.85 might be progressing. 100% projection of 118.65 to 108.12 from 114.73 at 104.20 level will be closely monitored. Strong breach in that area will cause downside boost. Key support of 98.97 should be aligned. While the support turned resistance of 108.12 is present, prognosis remains bearish.