USD/JPY is expected to continue the downside movement and trade with a bearish outlook. Although the pair posted a rebound from 108.35 (the low of August 28), it is still trading below its key resistance at 109.05, which should maintain the selling pressure. Both declining 20-period and 50-period moving averages are playing resistance roles. The relative strength index is below its neutrality level at 50.
Therefore, below 109.35, look for a further drop to 108.30 and even to 108.00 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 109.35 with a target at 109.55.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 109.35, Take Profit: 108.30
Resistance levels: 109.55, 109.80, and 110.25
Support Levels: 108.30, 108.00, 107.60
The material has been provided by InstaForex Company - www.instaforex.com
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