Daily chart: Apparently, the USDJPY pair will continue its bearish rally this week, because at present, this pair is forming a higher low pattern below the resistance at the 99.81 level. If USDJPY manages to break the support at the 98.25 level, it is expected to fall to the level of 96.38. However, if this pair manages to break the resistance at 99.81, it would be expected to rise to the level 100.94. Caution should be exercised in the current range in which we find this pair, because again there may be a trend change, but we must be watchful. The MACD indicator is negative and extreme overbought territory, which would support a bearish outlook on this pair.
H4 chart: The USDJPY pair remains above the 200-day moving average, having bounced off it. However, this rebound may fail and USDJPY could fall again. If USDJPY manages to break the support at the 99.05 level, it is expected to fall to the level of 97.00. On the other hand, if USDJPY manages to break the resistance at 99.93 level, it would be expected to rise to the level of 100.74. The MACD indicator is in extreme oversold territory and into positive, so we must be cautious with this pair.
H1 chart: The USDJPY pair moves within a low range, formed by the level of 99.42 and 98.38 levels. If the pair manages to break the resistance at the 99.42 level would be expected to rise to the level of 99.87, where the 200 day moving average. Furthermore, if USDJPY achieves in breaking the support level of 98.38, it is expected to drop to the level of 97.64. The MACD indicator is in neutral territory and this is normal, because the movements of "indecision" that made USDJPY.
Fundamental Outlook: For today's session, banks in Japan will be closed in observance of Marine Day.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD/JPY pair breaks with a bearish candlestick, the support level is at 98.38, take profit is at 97.64, and stop loss is at 99.15.
