USD/JPY Pulled Back
Pair’s trading is now neutral after the pull back from 107.00. If minor support of 105.31 is present, further increase is awaited. Over 107.00, Dollar/Yen will align 38.2% retracement of 114.73 to 104.62 at 108.48. Following pivot points include: (S1) 105.55; (P) 105.99; (R1) 106.34.
So far, no evidence of a reversal has been seen. Under 105.31 minor support, the recoil will be finished and trading will turn up on the downside to 104.62 and lower.
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.