USD/JPY is trading under pressure. The pair remains in consolidation now, but is still under pressure below its key horizontal resistance at 114.40. Besides, the 50-period moving average is heading downward, without showing any reversal signal. In this case, as long as 113.80 is not surpassed, the risk of the break below 112.50 remains high.
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 112.50. A break below this target will move the pair further downwards to 112.00. The pivot point stands at 113.80. 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 114.25 and the second one at 114.65.
Resistance levels: 114.25, 114.65, 115
Support levels: 112.50, 112.00, 111.65
The material has been provided by InstaForex Company – www.instaforex.com
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