USD/JPY is expected to trade with a bearish bias as the key resistance at 115.50. The pair is consolidating and remains under pressure below its horizontal resistance at 115.60. The relative strength index is bearish below its neutrality level at 50.
U.S. government bonds remained under pressure as the benchmark 10-year Treasury yield settled at 2.484%, up from 2.478% Monday. As the U.S. Federal Reserve will soon announce its decision on interest rates, the benchmark 2-year Treasury yield climbed to a six-year high of 1.169%. The U.S. dollar was little changed after its retreat on Monday. The ICE U.S. Dollar Index managed to hold onto the 101.00 level. Traders were waiting for the highly-expected 25-basis-point interest-rate rise to be confirmed by the Federal Reserve, and watching closely if the central bank would indicate the pace of higher rates.
Thus, as long as 115.50 is not broken up, look for a further drop to 114.80 and 114.60 in extension.
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 114.80. A break below this target will move the pair further downwards to 114.60. The pivot point stands at 115.50. In case the price moves in the opposite direction and bounces back from the support level, it will go 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 115.85 and the second one at 116.15.
Resistance levels: 115.85, 116.15, 116.50
Support levels: 114.80, 114.60, 114.30
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2gJGUhl
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