Corrective Pattern in USD/JPY
Pair’s running recoil is firm. Trading is now neutral. 110.26 resistance is aligned. Breach in that zone will expand the recoil from 108.10 to a test of 111.39 maximum. Under 109.18, further fall will head towards 108.10 and lower. Following pivot points include: (S1) 109.20; (P) 109.53; (R1) 109.87.
Price dynamic from 111.39 is considered as a corrective pattern which might prolong. If larger drop occurs, sustained support from 61.8% retracement of 104.62 to 111.39 at 107.20 should bound downside and cause recoil.
The corrective fall from 118.65 should have finished at 104.62. USD/JPY is restricted inside of medium term falling channel from 118.65. Firm breach of 61.8% retracement of 104.62 to 111.39 at 107.20 will extend the decrease from 118.65 through the minimum of 104.62.