USD/JPY’s 4 Hour 55 EMA
The pair has recommenced after hitting support from 4 hour 55 EMA. Still, it remained under the short term top of 107.48. Trading stays neutral. Over 107.48, the recoil from 104.62 will extend. Sustained breach of 108.48 will suggest trend reversal. Following pivot points include: (S1) 106.50; (P) 106.85; (R1) 107.09.
USD/JPY should head towards 61.8% retracement at 110.86. Rejection from 108.48 around the key resistance of 108.12 will support bearish case. Breach of 105.65 support will confirm ending of recoil and push trading to 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.