Recently, the USD/JPY pair has been trading downwards. The price tested the level of 110.24. Anyway, I found a fake breakout of yesterday's low at 110.77, which is a sign that selling looks risky. The downward movement from yesterday was extreme and the range was much bigger than average, which is a sign that today buyers can at least start the upward correction. I also found a hidden bullish divergence on the ROC oscilator. The upward target is set at the price of 111.40.
Resistance levels:
R1: 112.45
R2: 113.00
R3: 114.00
Support levels:
S1: 110.65
S2: 110.10
S3: 109.20
Trading recommendations for today: watch for potential buying opportunities.
The material has been provided by InstaForex Company - www.instaforex.com