USD/JPY is expected to trade with bearish bias as the Key resistance is at 117.00. The pair has broken below the lower boundary of a bullish channel and remains on the downside. Technically the relative strength index is bearish and below its neutrality area at 50. Hence, as long as 117.00 holds on the upside, look for a further drop toward 116.20. A break below this level would call for a further drop toward 116.00.
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 116.20. A break below this target will move the pair further downwards to 116.00. The pivot point stands at 117.00. 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 117.50 and the second one at 117.25.
Resistance levels: 117.25, 117.50, 117.90
Support levels: 116.20, 116.00, 115.55
The material has been provided by InstaForex Company – www.instaforex.com