USD/JPY is expected to trade with a bearis bias. The pair recorded a succession of lower tops and lower bottoms since September 2, which confirmed a bearish outlook. The descending 50-period moving average acts as resistance, which should continue to push the prices lower. Furthermore, the relative strength index is still below its neutrality area at 50. As long as 103.15 is not surpassed, the pair is likely to drop toward 102.10 and even to 101.70 as possible.
Trading 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 102.10. A break below this target will move the pair further downwards to 101.70. The pivot point stands at 103.15. In case 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 103.80 and the second one, at 104.35.
Resistance levels: 103.80, 104.35, 104.95
Support levels: 102.10, 101.70, 101.20
The material has been provided by InstaForex Company – www.instaforex.com
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