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Technical analysis of USD/JPY for July 18, 2017

1500384914_USDJPYM30.png

All our targets have been hit which we predicted in Yesterday's analysis. The pair is trading below its rising 20-period and 50-period moving averages, which play support roles and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum.

As long as 0.9610 holds on the downside, the pair is likely to challenge its next key resistance at 0.9510.

Alternatively, if the price moves in the opposite direction than predicted, a downside long position is recommended above 112.55 with a target at 112.85.

Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position while the price below the pivot point is a sign for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy: SELL, Stop Loss: 112.55, Take Profit: 111.50

Resistance levels: 112.85, 113.15, and 113.50

Support levels: 111.50,111.20, and 111.45

The material has been provided by InstaForex Company - www.instaforex.com