All our targets, which we predicted in yesterday’s analysis, have been hit. USD/JPY is still under pressure and expected to continue the downside movement. The pair is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is capped by a bearish trend line since August 4.
Hence, as long as 109.50 is not surpassed, look for a further decline to 108.60 and even to 108.60 in extension.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 109.50 with a target at 109.85.
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: 109.50, Take Profit: 108.60
Resistance levels: 109.85, 110.15, and 110.55
Support Levels: 108.60, 108.20, 107.65
The material has been provided by InstaForex Company – www.instaforex.com
Source: Forex Review