USD/JPY is expected to trade with bearish outlook as the key resistance is at 101.25. The pair remains under pressure below its nearest resistance at 101.25, which maintains the strong selling pressure since September 22. Besides, the relative strength index is bearish below its neutrality area at 50. As long as 101.25 is not surpassed, the pair is likely to drop to 100.05. In case of a breakout, 99.60 would be the next down target.
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 100.05. A break below this target will move the pair further downwards to 99.60. The pivot point stands at 101.25. 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 101.60 and the second one at 102.05.
Resistance levels: 101.60, 102.05, 102.35
Support levels: 100.05, 99.60, 99.20
The material has been provided by InstaForex Company – www.instaforex.com
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