USD/JPY: More Consolidation is Expected
Stance of trading is neutral, as the pull back from a short term top 110.02 was stopped. More consolidation is awaited. Following pivot points include: (S1) 108.69; (P) 108.98; (R1) 109.32.
Overcoming of 110.02 will renew the growth from 104.62 to t 61.8% retracement of 114.73 to 104.62 at 110.86. Trading below 108.64 will bring deeper drop to 38.2% retracement of 104.62 to 110.02 at 107.95. Downside should be contained by strong support from 107.95.
A corrective drop from 118.65 has completed with three waves down to 104.62. So that, growth from 98.97 could be resuming. Focus is on resistance 114.73. Overcoming of 114.73 will aline 118.65 and above. This will now be the preferred case while the pair stays above 55 day EMA (now at 107.95).