An Upward USD/JPY Correction Is To Be Expected

The pair maintained its downward trend throughout the week and today it approached the support around 116.00 – 105.90.

I think that around that support there are several probable scenarios:

The first scenario is that it is possible for the pair to test the support and to begin a correction to the upside.

The second scenario is that the correction has already begun while the expected critical target for the move to the upside is around 107.90.

In case the pair breaks out above that level and it manages to remain above that level we could consider a renewal of the upward trend.

The alternative is that we could witness the formation of a new local low around 105.20 – 105.00.