USD/JPY’s Recoil Progression
Pair’s trading character is neutral. USD/JPY is holding inside of diapason under the near term top of 107.48. The recoil from 104.62 might be progressing. Strong breach of 108.48 will indicate a reversal. USD/JPY should align 61.8% retracement at 110.86. Following pivot points include: (S1) 106.50; (P) 106.85; (R1) 107.09.
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 a downside boost. Key support of 98.97 should be aligned. While the support turned resistance of 108.12 is present, prognosis remains bearish.