USD/JPY is expected to trade with a bearish outlook. The pair broke below the support level of 112.60 and broke below its 20-period and 50-period moving averages. In addition, the bearish cross between 20-period and 50-period moving averages has been identified. The relative strength index lacks upward momentum.
To conclude, as long as 112.60 is not broken, look for a further decline with targets at 112.10 and 111.95 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 112.60 with a target at 112.80.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 112.60, Take Profit: 112.10
Resistance levels: 112.80, 113.05 and 113.35 Support Levels: 112.10, 111.95, 111.45
The material has been provided by InstaForex Company – www.instaforex.com