USD/JPY is expected to trade with bearish outlook. Despite the recent pullback, the pair is still trading below the declining 50-period moving average, which plays a resistance role. The relative strength index is below its neutrality level at 50 and lacks upward momentum.
Hence, as long as 113.75 holds on the upside, look for a further downside with targets at 113.20 and 112.90 in extension.
Alternatively, if the price moves in the opposite direction, a short position is recommended above 113.75 with a target at 114.05.
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: 113.75, Take Profit: 113.20
Resistance levels: 114.05, 114.30 and 114.65 Support Levels: 113.20, 112.90, 112.50
