Trend Reversal in USD/JPY
Pair’s recoil from 104.62 hit the 107.00 maximum. According to bullish convergence in 4 hour MACD, breach of 106.63 resistance suggests near term bottom creation. Trading turned up on the upside to 38.2% retracement of 114.73 to 104.62 at 108.48. Following pivot points include: (S1) 105.12; (P) 105.51; (R1) 105.71.
Breach of 108.48 might indicate a trend reversal. Under 105.31 minor support, the recoil will be finished and trading will turn up on the downside.
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.