Technical analysis of USD/JPY for December 22, 2016

The USDJPY is forming a triangle pattern between 118 and 117.25. A break of either level will push the price towards 119 or 116 respectively. The trend is neutral as the price is moving sideways. I prefer to be shorting near resistance.

Red line - resistance

Blue line - support

Green line - diverging RSI

The short-term support is at 117.25. Resistance is at 117.95. I prefer to sell bounces and buy dips near 117.25 or at least close half. I believe that eventually the price will break the triangle pattern to the downside and give us a push lower towards 116-115.

The long-term trend remains bullish as long as the price is above 115. Oscillators are diverging at overbought levels. Bulls need to be very cautious as the parabolic rise in USDJPY when and if it reverses will be very sharp.The material has been provided by InstaForex Company - www.instaforex.com

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