USD/JPY is expected to trade with a bearish bias. The pair is turning down now, and remains capped by its falling 20-period moving average. The relative strength index is negative below its neutrality area at 50. Last but not least, the key horizontal resistance at 116.30 maintains the strong selling pressure on the prices.
To sum up, below 116.30, look for a new pullback to 115.15 and 114.70 in extension.
Recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 115.15. A break below this target will move the pair further downwards to 114.70. The pivot point stands at 116.30. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 116.75 and the second one at 117.15.
Resistance levels: 116.75, 117.15, 117.45
Support levels: 115.15 114.70, 114.25
The material has been provided by InstaForex Company – www.instaforex.com
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