Potential Pull Back in USD/JPY
Pair’s recoil from 106.42 extended after meeting 107.48 level and hit 107.66 maximum. Trading turned up on the upside to 38.2% retracement of 114.73 to 104.62 at 108.48 9 around 108.12. This resistance area will assess the medium term forecast. Following pivot points include: (S1) 106.88; (P) 107.15; (R1) 107.61.
Breach of 106.64 minor support will confirm ending of recoil. Another surge is expected even if USD/JPY pulls back.
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.