Daily chart: USDJPY has made a bearish rebound in resistance at the level of 98.25. Now, this pair has touched the support at 97.59 and if it is broken, it is expected to fall to the level of 96.38. However, this can be formation of a lower high pattern and if the USDJPY pair manages to break the resistance level of 98.25, it would be expected to rise to the level of 99.81. It is very likely that this pair continues bullish trend, but we must be alert to the development of the general trend which is bearish showing in this chart. The MACD indicator is in neutral territory.
H4 chart: This pair is about to break the support at the level of 97.65 and if it succeeds, it would be expected to fall to the level of 97.00. Recall that the USDJPY made a rebound bearish on the moving average of 200, near the resistance level of 98.27, which could prompt a new bearish trend in this chart. On the other hand, if the USDJPY managed to break the resistance at the 98.27 level, it will be expected to rise to the level of 99.05. The MACD indicator is in extreme overbought and entering negative territory, which could support our bearish outlook for this pair.
H1 chart: The USDJPY has found strong resistance at the Point Of Control near the resistance level of 98.04. This could help this pair to begin strengthening an intraday bearish trend. If the USDJPY manages to break the support at 97.64, it is expected to fall to the level of 97.13. On the other hand, if the USDJPY managed to break the resistance at 98.04, it will be expected to rise to the level of 98.38. Current levels are very important for the continuation of the bearish trend on this pair. The MACD indicator remains in negative territory.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD/JPY pair breaks a bearish candlestick; the support level is at 97.64, take profit is at 97.13, and stop loss is at 98.13.
