Japanese Yen strength came to an abrupt stop at the bottom of the USD/JPY’s multi-year trending channel, and the pair has since recovered impressively through recent trade. The sharp recovery suggests that a further short-term rebound is likely, with next major resistance to come in near the 38.2 percent Fibonacci retracement of 110.70-90.90 at 98.45. Said level likewise coincides with the spike low seen just several weeks ago, and a break above could tell us that further USD/JPY corrections are in store. Yet clearly dramatic declines suggest that the more medium-term USD/JPY downtrend remains intact. Discuss the USD/JPY in our forex forum.