USD/JPY: More Consolidation Is Awaited
Stance of trading is neutral for consolidation below short term top 110.02. The pair recovers to maximum 109.63. More consolidation is awaited. Following pivot points include: (S1) 108.85; (P) 109.10; (R1) 109.38.
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 pull back. Downside should be contained by 38.2% retracement of 104.62 to 110.02 at 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).