USD/JPY In Diapason

Technical Reports

Pair’s trading stays neutral. USD/JPY is holding inside of diapason under 110.89. Breach of 110.89 will extend the lift from 108.10 and align 111.39. Strong breach in that zone will prolong the rally from 104.62 and head towards key resistance of 114.73. Following pivot points include: (S1) 109.81; (P) 110.15; (R1) 110.61.

Under 109.36, the drop from 110.89 will enlarge. Price dynamic from 111.39 is viewed as a corrective pattern. Strong support from 61.8% retracement of 104.62 to 111.39 at 107.20 should restrain downside and draw recoil. Over 110.89, the increase from 108.10 will align 111.39.

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.