Daily analysis of USD/JPY for May 19, 2017

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Overview

The USDJPY pair provided some positive trading yesterday approaching from the bearish channel’s resistance. Stochastic loses its positive momentum clearly reaching the oversold areas’ thresholds, and therefore supporting the chances of a bearish bounce to resume the bearish trend again. Therefore, we expect the bearish trend for today, waiting for the price to break 110.50 levels to reinforce the expectations of targeting 109.00 levels as the next main station. A breach of 112.25 will push the price to test the most important resistance in the short-term trading at 113.97 before any new attempt to decline. The expected trading range for today is between the 110.00 support and the 112.00 resistance.

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