USD/JPY consolidates, approaching recovery zone

The US dollar failed to hold at the critical support price level at 111.485 highlighted in my previous post and plunged taking out two support levels at 110.735 and 110.280 before bouncing back at 110.270.

I think the US dollar is about to complete the current pullback stage and move into the recovery zone, which could happen in the coming days. The long term indicator is still in the red; however, the pair has been consolidating within a tight price range at 110.600 and 110.275 with a surge in volume in the last two days which could lead to a breakout to the upside. Critical support price level to watch is estimated at 110.275 and 109.985