USD/JPY is expected to trade with a bearish bias The pair broke below its 20-period and 50-period moving averages, but is still staying above its key support at 113.15 and is supported by bullish trend line (since Jan. 23), which should limit downside potential. The relative strength index is below its neutrality level at 50. We are cautious now.
As long as 113.15 is not broken, I keep positive view unchanged with an up target at 114.15 first.
Recommendation:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 114.15 and the second one at 114.55. In the alternative scenario, short positions are recommended with the first target at 113.00 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 112.75. The pivot point is at 113.15.
Resistance levels: 114.15, 114.55, 114.95 , Support levels: 113.00, 112.75, 112.45
