Daily chart: USD/JPY is breaking the support at the 99.81 level. However, we must bear in mind that the general trend of this pair is still bullish. Eventually, USD/JPY could fall to the support level at 98.25, but if this pair breaks the resistance level at 99.81, it is expected to rise to the level of 100.94. This pair remains above the 200 day moving average and the MACD indicator is in a negative territory, although showing some weakness in the general trend of this pair.
H4 chart: USD/JPY is bouncing above the 200 day moving average and the bearish trend line. It is very possible that this pair up again until the resistance in the 99.93 level. However, if this pair does break the support at the level of 99.05, it's expected to drop to the level of 98.27. While USD/JPY remains above the 200 SMA, the bullish outlook still alive. On the other hand, we must bear in mind that this may be the formation of a higher low pattern. The MACD indicator remains in a negative territory.
H1 chart: USD/JPY attempted to break the support at the 99.42 level, but to no avail. In this chart, USD/JPY stays below the 200 day moving average and close to that level, it has formed a Point of Control (POC) and a resistance in the 99.87 level. If the pair manages to break that level, it is expected to rise to the level of 100.31. Furthermore, if USD/JPY achieves in breaking the support level at 99.42, it's expected to drop to the level of 98.85. The MACD indicator is in an extremely oversold territory and into positive, so we must be cautious.
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 99.42, take profit is at 98.85, and stop loss is at 99.99.
