USD/JPY is expected to trade in lower resistance as far as key resistance lies at 110.45. The pair posted a technical rebound, and is now challenging its nearest resistance at 110.45. The upward potential is likely to be limited by the key resistance which is at 110.45. In addition, the 50-period moving average is still heading downward. Therefore, even though a continuation of the technical rebound cannot be ruled out, its extent should be very limited.
As long as 110.45 holds on the upside, look for a return to 109.65 and 109.35 in extension.
Alternatively, if price moves in the opposite direction as predicted, long position is recommended above 110.45 with targets at 109.65 and 109.35.
Graph Explanation: The black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicate the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy : SELL, Stop Loss: 110.45, Take Profit: 109.65
Resistance levels: 120.80, 111.10, and 111.45
Support levels: 109.65,109.35, and 109
The material has been provided by InstaForex Company - www.instaforex.com