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Daily analysis of USD/JPY for January 26, 2018

USDJPYH4.png

Overview

The USD/JPY pair bounced clearly after touching the bearish channel's support that appears on the chart. The pair aims to test this channel's resistance. The resistance is met by the EMA50 to add more strength to it. At the same time, stochastic is losing the positive momentum clearly and approaching the overbought areas. Therefore, these factors support the chances of a further bearish trend in the short term. Please note that breaking 109.05 will open the way to head towards our next main target at 107.28, while holding below 110.15 represents the key condition to continue the expected decline. The expected trading range for today is between 108.25 support and 110.15 resistance.

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