USD/JPY is under pressure. The pair is trading below its key resistance at 101.25, which maintains the strong selling pressure. The downward momentum is further reinforced by a descending 50-period moving average, which is playing a resistance role. Besides, the relative strength index is below its neutrality area at 50, and lacks upward momentum. To conclude, as long as 101.25 is not broken up, the pair is likely to drop to its nearest support at 100.05, if breakout, look for further downsides to 99.60 as likely.
Trading Recommendation: The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 100.05. A break below this target will move the pair further downwards to 99.60. The pivot point stands at 101.25. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 101.60 and the second one at 102.05.
Resistance levels: 101.60, 102.05, 102.35
Support levels: 100.05, 99.60, 99.20
