USD/JPY's Recoil Ended
Pair’s trading is still neutral. The recoil from 108.10 should have ended. Breach of 110.27 will push trading to the downside to 109.36 support. Break in that place will indicate that the corrective pattern from 111.39 is progressing towards 108.10 support. Following pivot points include: (S1) 110.30; (P) 110.55; (R1) 110.72.
61.8% retracement of 104.62 to 111.39 at 107.20 will restrain the downside. Over 111.13, USD/JPY will align repeat test of 111.39 level.
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.