USD/JPY is expected to trade in a lower range. The pair remains under pressure below its key resistance at 113.45, and is expected to be choppy in the coming sessions. The intraday trend remains mixed to bearish, as the falling 50-period moving average maintains the strong selling pressure on the prices. Meanwhile, the relative strength index is around its neutrality area at 50 and lacks upward momentum.
To conclude, as long as 113.45 is not surpassed, look for a test of low at 112.70 as likely.
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 112.70. A break below this target will move the pair further downwards to 112.15. The pivot point stands at 113.45. If 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 113.75 and the second one at 114.00.
Resistance levels: 113.75, 114.00, and 114.35
Support levels: 112.70, 112.15, and 111.60
