Technical analysis of USD/JPY for March 17, 2017

USD/JPY is under pressure. The pair is trading below its 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Nevertheless, 113.70 is playing a key resistance role, which should limit the upside potential.

As long as the resistance at 113.70 isn’t surpassed, the risk of a break below 113.15 remains high. A break below this level would call for a further drop toward 112.90.

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 112.55. A break below this target will move the pair further downwards to 112.00. The pivot point stands at 114.00. 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 114.45 and the second one at 114.85.

Resistance levels: 114.00, 114.45, and 114.85

Support levels: 113.15, 112.90, and 112.55

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

Source:: Technical analysis of USD/JPY for March 17, 2017