USD/JPY Recoil Restoration
The pair has increased to 107.14 maximum. Breach of 107.00 confirms restoration of recoil from 104.62. Trading is on the upside to 38.2% retracement of 114.73 to 104.62 at 108.48. Following pivot points include: (S1) 106.22; (P) 106.53; (R1) 107.08.
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.