USD/JPY is expected to trade with bearish outlook. From a technical view, the pair remains under pressure below its nearest resistance at 118.00, and is likely to post further decline. Both the 20-period and 50-period moving averages are turning down, and act as resistance. In addition, the relative strength index remains capped by a negative trend line. In which case, as long as 118.00 is not surpassed, look for a return to 115.65 and 116.15 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 116.65. A break below this target will move the pair further downwards to 116.15. The pivot point stands at 118. 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 118.35 and the second one at 118.65.
Resistance levels: 118.35, 118.65, 119.05
Support levels: 116.65, 116.15, 115.75
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2gR97zj
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