Trend Reversal in USD/JPY
Pair’s recoil from 104.62 is extending. Trading is on the upside to 38.2% retracement of 114.73 to 104.62 at 108.48. Sustained breach in that zone will suggest trend reversal. 61.8% retracement at 110.86 should be aligned in the near term. Following pivot points include: (S1) 106.89; (P) 107.19; (R1) 107.68.
Rejection from 108.48 will add to bearish case. Breach of 105.65 support will confirm ending of recoil 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.