USD/JPY Tested the 61.8% Fibo

During the early European session the USD/JPY pair tested the critical resistance at 111.76 (61.8% Fibonacci retracement of the 114.50 to 107.35 drop)  and marched higher to mark fresh high at 111.89. However the pair couldn’t find enough strength to hold around this level and retreated lower to currently trade at 111.50. On the four hour time frame the price is moving above its moving averages. RSI is located slightly above its mid-line and is losing directional strength, while stochastic is displaying strong bearish momentum. Bulls rally is not yet endangered unless the pair closes below 110.90 (50% Fibonacci retracement of same July to September decline). All eyes on FOMC tomorrow which will set more clear direction anyway.