USD/JPY is under pressure. The pair recorded lower tops and lower bottoms since April 10, which confirmed a negative outlook. The downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The relative strength index is bearish and calls for a further drop.
Therefore, as long as 111.00 holds on the upside, look for a new decline to 110.00 and even to 109.70 in extension.
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 110.00. A break below this target will move the pair further downwards to 109.70. The pivot point stands at 111.00. If the price moves in the opposite direction and bounces back from the support level, it will move 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 111.35 and the second one at 111.55.
Resistance levels: 111.35, 111.55, and 111.75
Support levels: 110.00, 109.70, and 109.25
The material has been provided by InstaForex Company - www.instaforex.com