USD/JPY is expected to continue the downside movement. The pair is trading below the declining 20-period and 50-period moving averages which play resistance roles and maintain the downside bias. The relative strength index is bearish, calling for a further drop.
To sum up, as long as 111.00 holds on the upside, look for a new drop to 110.25 and even to 110.05 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 110.25. A break below this target will move the pair further downwards to 110.05. 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 111.25 and the second one at 111.50.
Resistance levels: 111.25, 111.50, and 111.75
Support levels: 110.25, 110.05, and 109.75
The material has been provided by InstaForex Company - www.instaforex.comfrom www.instaforex.com https://www.instaforex.com/forex_analysis/90113/?x=BPDZ
