USD/JPY is under pressure. Despite a recent rebound from 0.9730 (the low of January 11), the pair is still capped by a declining 50-period moving average. The relative strength index is mixed with a bearish bias. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
Hence, as long as 0.9750 is not surpassed, look for a new drop with targets at 0.9695 and 0.9670 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot point indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: Sell, stop loss at 0.9755, take profit at 0.9695.
Resistance levels: 0.9775, 0.9800, and 0.9840
Support levels: 0.9695, 0.9670, and 0.9650.
The material has been provided by InstaForex Company – www.instaforex.com