USD/JPY intraday is under pressure. The pair broke below its 20-period moving average, and is now challenging its support of the 50-period one. In addition, the relative strength index is bearish below its neutrality level at 50 and calls for a further drop. Additionally, 112.90 represents a significant key resistance level, which should limit the upside potential.
As long as this key level is not surpassed, a new decline to 111.90 and even to 111.60 is likely to occur.
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 111.90. A break below this target will move the pair further downwards to 111.60. The pivot point stands at 112.90. 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 113.30 and the second one at 113.60.
Resistance levels: 113.30, 113.60, and 113.95
Support levels: 111.90, 111.60, and 111.10
The material has been provided by InstaForex Company - www.instaforex.com