USD/JPY is under pressure. 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 below its neutrality level at 50.
Therefore, as long as 113.90 holds on the upside, look for a further drop to 113.15 and even to 112.85 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 113.15. A break below this target will move the pair further downwards to 112.85. The pivot point stands at 113.90. 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 114.35 and the second one at 114.70.
Resistance levels: 114.40, 114.70, and 115.00
Support levels: 113.15, 112.85, and 112.55
The material has been provided by InstaForex Company - www.instaforex.com