All our downside targets which we predicted in the previous analysis have been hit. USD/JPY is still under pressure. The pair retreated and broke below its 20-period moving average after touching the declining 50-period moving average. The relative strength index is bearish, calling for a further downside. To conclude, as long as 109.75 holds on the upside, look for a return to 108.80. A break below this level would trigger a new decline to 108.40.
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 109.75, take profit at 108.80.
Resistance levels: 110.05, 110.35, and 110.75
Support levels: 108.80, 108.40, and 108.00.
