USD/JPY is losing some downside momentum but there is not clear sign of bottoming yet. Sustained break of 61.8% retracement of 118.05 to 123.74 at 120.22 will indicate that rebound from 116.13 has completed already and deeper fall would be seen back towards 116.13 low. Meanwhile, above 121.49 minor resistance will turn back to the upside for 123.74 resistance. Overall, more choppy sideway trading could be seen as consolidation pattern from 125.85 extends. The consolidation pattern from 125.85 medium term top is still in progress. In case of deeper fall, we’d expect strong support between 115.55 and 38.2% retracement of 101.08 to 125.85 at 116.38 to contain downside. An eventual break of 125.85 is still anticipated at a later stage.
Daily Pivots: (S1) 120.14; (P) 120.38; (R1) 120.62;
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