USD/JPY is expected to trade with bearish bias as the key resistance is at 113.00. The pair is consolidating below its 20-period and 50-period moving averages, which are playing resistance roles. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 113.00 is playing a key resistance, which should limit the upside potential.
As long as this key level holds on the upside, look for a further drop toward 112.05 and even 111.65 in extension.
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 112.05. A break below this target will move the pair further downwards to 111.65. The pivot point stands at 113.00. 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 113.50 and the second one at 114.00.
Resistance levels: 113.50, 114.00, and 114.45
Support levels: 112.05, 111.65, and 111.25
