USD/JPY is expected to trade in a lower range. The pair broke below 102.20, representing a horizontal key level. The previous support now acts as resistance, which should limit any upside potential. The downside momentum is further reinforced by its descending 50-period moving average, which maintains a bearish bias. In addition, the relative strength index broke down its 30 level, and lacks upward momentum. To conclude, as long as 102.20 is not surpassed, the pair is likely to drop to its next support at 100.80. A break below this level would open the way to further weaknesses toward 100.50.
Trading Recommendation:
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 100.80. A break below this target will move the pair further downwards to 100.50. The pivot point stands at 102.20. In case 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 103.15 and the second one, at 103.80.
Resistance levels: 103.15, 103.80, 104.25
Support levels: 100.80, 100.50, 100
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2cApy5p
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