USD/JPY is under pressure. US indices closed lower on Monday, undermined by shares in the technology hardware and equipment, energy as well as semiconductor and equipment sectors. The DJIA fell 23.65, or 0.1%, to 17,623.05. The S&P 500 slipped 3.97, or 0.2%, to 2,071.18, while the Nasdaq Composite gained 0.1% to 5,034.70. The yield on the 10-year Treasury note fell slightly to 2.058%. US crude oil lost 1.4% to $43.98 per barrel, while gold gained 0.3% to $1,167 a troy ounce. On the economic data front, US new homes sales slumped to the lowest level since November 2014. Sales dropped 11.5% to 468,000 seasonally adjusted and the prior two months were revised lower. The greenback slid broadly after disappointing housing data, and investors fixed profits on recent gains.The pair has reversed down and remains under pressure below its key resistance at 121.10. The 20-period intraday MA has just crossed below its 50-period one, which is also turning down. Meanwhile, the intraday RSI lacks upward momentum. The first target to the downside is therefore set at the horizontal support and overlap at 119.90. A break below this level would open the way to further weakness towards 119.55 in extension.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 119.90 and the second target at 119.55. In the alternative scenario, short positions are recommended with the first target at 121.50 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 121.90. The pivot point is at 121.10.
Resistance levels:121.50 121.90 122.30
Support levels: 119.90 119.55 119.20
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