All our targets which we predicted in yesterday's analysis have been hit. USD/JPY is still under pressure and expected to trade in a lower range. The pair is capped by a bearish trend line since October 11, which confirmed a negative outlook. Both declining 20-period and 50-period moving averages are playing resistance roles. The relative strength index is also capped by a falling trend line since October 12.
Hence, below 112.30, look for a further decline with targets at 111.55 and 111.45 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 112.60 with a target at 112.80.
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: 112.30, Take Profit: 111.55
Resistance levels: 112.60, 112.80 and 113.15 Support Levels: 111.55, 111.45, 111.00The material has been provided by InstaForex Company - www.instaforex.com
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