Overview:
USDJPY is trading in lover range. RSI is below its neutral area, as MACD is showing bearish bias but stochastic is showing reversal sign with oversold. JPY demands lower, as household confidence came to 39.2 against the forecasted 40.7 previous was 39.4. After hitting the high of 89.65, the USDJPY pair is going to continue its downtrend with downside risk toward 87.25, as far as 88.85 area is not crossed the reversal of the price toward 89 is not sure. After crossing of 88.85 the movement towards the previous high of 89.65 is expected; there 89.15 is minor resistance.
Preference:
Short positions below 88.85 with targets at 87.95 and 87.65 in extension.
Support Levels:
S1 - 87.95
S2 - 87.65
S3 - 87.25
Alternative scenario:
Above 88.85 look for further upside with 89.15 and 89.65 as targets.
Resistance Levels:
R1- 89.15
R2 - 89.65
R3 - 90
Technical Comment:
The pair remains on the downside and is challenging its support.
