• USD/JPY pair declined on Friday as market worries over a potential British exit from the European Union increased the demand for safe heaven Japanese yen.
     
  • Japanese yen benefited as investors reassessed the probability of Britain voting to leave the European Union in a referendum next week.
  • Further upside is expected to be limited as the pair finds strong resistance at 105.29 which should limit upside and bring a decline towards lower levels in the short term. 
     
  • To the upside, the immediate resistance can be seen at 104.47, a break above this level would take the pair towards next resistance level at 104.81.
     
  • To the downside immediate support can be seen at 103.63, a break below this level will open the door towards next level at 103.00.
     

Resistance Levels

R1: 104.47 (50% Retracement Level)

R2: 104.81 (Daily high)

R3: 105.29 (61.8% Retracement Level)

Support Levels

S1: 103.63 (38.2% Retracement Level)

S2: 103.00 (Psychological Level)

S3:102.63 (23.6% Retracement Level)

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