USD/JPY's Resistance Zone

Technical Reports

The recoil from 110.37 is firm. The pair, however, remained bounded under the resistance area of 111.75/82. Trading remains neutral. Following pivot points include: (S1) 111.22; (P) 111.43; (R1) 111.81.

Breach of 111.73 minor resistance will indicate extension of increase from 109.76. In that case, trading will turn up on the upside to repeat test of 113.17 maximum. Sustained breach in that zone will prolong bigger rally from 104.62. Under 110.37, larger decline will be seen. Firm support from 38.2% retracement of 104.62 to 113.17 at 109.90 should retain downside and cause recoil.

The corrective fall from 118.65 should have finished at 104.62. Strong breach of 114.73 will extend the intact rally from 98.97 for 100% projection of 98.97 to 118.65 from 104.62 at 124.30 near 125.85. Larger decline should align 61.8% retracement of 104.62 to 113.17 at 107.88 and lower.