USD/JPY is under pressure. The pair is bearish below a descending trend line since September 15, and is likely to test the next support at 101.45. At the same time, the descending 50-period moving average is playing a resistance role and is heading downward. In addition, 102.15 represents a key resistance and should limit the upward attempts. On Monday, U.S. stock indexes ended broadly flat as gains in big bank shares were offset by losses in Apple (-1.2%) and food & staples retailers. The Dow Jones Industrial Average edged down 3 points to 18120, the S&P 500 was little changed at 2139, and Nasdaq Composite was down 9 points (-0.2%) to 5235.
The U.S. dollar softened from a one-month high registered last Friday as traders repositioned ahead of this week’s central bank monetary policy meetings in the U.S. and Japan.
To sum up, as long as the resistance at 102.15 is not surpassed, look for further downsides to 101.45 at first. If breakout, the pair is likely to decline to 101.15.
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 101.45. A break below this target will move the pair further downwards to 102.15. The pivot point stands at 102.45. 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 102.45 and the second one at 102.75.
Resistance levels: 102.45, 102.75, 103.00
Support levels: 101.45, 101.15, 100.80
The material has been provided by InstaForex Company – www.instaforex.com
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