USD/JPY Recovers Slightly

Technical Reports

Trading tone is neutral, as the pair stays below resistance 112.88. Another decline is not excluded and overcoming of 111.37 will widen a corrective drop from 114.54 to 38.2% retracement of 104.62 to 114.54 at 110.75. Pivot points are at: (S1) 111.92; (P) 112.24; (R1) 112.70.

Bottoming signal is possible above key support 109.76. Overcoming of resistance 112.88 will indicate completion of the drop. In that case, trading will back to the upside for retesting 114.54.

Overcoming of resistance 114.73 will renew growth from 98.97 to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is close to 125.85. A corrective drop from 118.65 should have completed with three waves down to 104.62, but deeper fall is possible to 61.8% retracement of 104.62 to 113.17 at 107.88 and below.