The USDJPY pair failed to break below the April 17 low of 108.13 and recently moved above the bearish trend line from 111.71 to 110.81 at 110.15 on its 4-hour chart, suggesting that the bearish movement from the May 11 high of 114.36 had completed at 108.81 already. As discussed before, as long as 108.13 support holds, the fall from 114.36 would possibly be correction of the uptrend from 108.13, and another rise to retest the resistance of the March 10 high of 115.50 is still possible after the correction.
On the upside
The pair is expected to find the first resistance at the May 24 high of 112.12, a break through this level could take price to the next import resistance level of 115.50. Above this level will confirm that the long term uptrend from the June 2016 low of 98.97 has resumed, then the following bullish movement could bring price into 125.00 zone.
On the downside
The near term support is at 109.70, only a breakdown below this level could trigger another fall to retest 108.13 support. Below this level will indicate that the USDJPY pair remains in the downtrend from the December 2016 high of 118.66, then the pair will find the next support level at the 61.8% Fibonacci retracement taken from the June 2016 low to the December 2016 high at around 106.50.
Support levels: 109.70 (near term support), 108.81 (June 14 low), 108.13 (April 17 low), 106.50 (the 61.8% Fibonacci retracement).
Resistance levels: 112.12 (May 24 high), 114.36 (May 11 high), 115.50 (March 10 high), 118.66 (December 2016 high).