USD/JPY is under pressure. The pair is trading below its 50-period moving average and is testing the 20-period one. The relative strength index is below its neutrality level at 50. Additionally, 115.25 is playing a key resistance role, which should limit the upside potential.
As long as this key level holds on the upside, look for a further drop toward 114.60 and even 114.25 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 114.60. A break below this target will move the pair further downwards to 114.25. The pivot point stands at 115.25. 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 115.50 and the second one at 115.75.
Resistance levels: 115.50, 116.00, and 116.45
Support levels: 114.25, 113.80, and 113.35
The material has been provided by InstaForex Company – www.instaforex.com