USD/JPY is expected to trade in a lower range as the key resistance is holding at 111.70. The pair remains capped by the descending 50-period (30-minute chart) moving average as well as the key resistance is seen at 111.45. The bounce from Friday's low of 110.85 is losing steam. Meanwhile, the intraday relative strength index is still under the neutrality level of 50, further indicating a lack of upward momentum for the pair.
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 111.05. A break below this target will move the pair further downwards to 110.80. The pivot point stands at 111.70. If 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 111.95 and the second one at 112.20.
Resistance levels: 111.95, 112.20, and 112.60
Support levels: 111.05, 110.80, and 110.50
The material has been provided by InstaForex Company - www.instaforex.com
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