USD/JPY is expected to trade with a bearish outlook. The pair is under pressure below the key resistance at 107.25, which should limit the upside potential. Both declining 20-period and 50-period moving averages play resistance roles. The relative strength index is mixed with a bearish bias. Hence, below 107.25, look for a return with targets at 106.70 and 106.40 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot point indicates a short position. The red lines show the support levels, and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: SELL, stop loss at 107.25, take profit at 106.70.
Resistance levels: 107.50, 107.75, and 107.30
Support levels: 106.70, 106.40, and 106.
