USD/JPY is under pressure. The pair is capped by a bearish trend line, which confirms a negative outlook. The declining 50-period moving average should push the prices lower. The relative strength index lacks upward momentum. To conclude, as long as 107.10 is not surpassed, look for a further drop with targets at 106.10 and 105.75 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended to be above 107.10 with a target of 107.40.
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 at 107.10, take profit at 106.10.
Resistance levels: 107.90, 108.40, and 108.90
Support levels: 106.10, 105.75, and 105.35.
