USD/JPY is under pressure and is expected to trade in a lower range. The pair is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish and calls for a further decline.
To sum up, as long as 114.00 is not surpassed, look for a new test with targets at 113.00 and 112.70 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 114.00 with a target at 114.30.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 114.00, Take Profit: 113.00
Resistance levels: 114.30, 114.65 and 115.00 Support Levels: 113.00, 112.70, 112.40
