Technical analysis of USD/JPY for August 09, 2017

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USD/JPY is under pressure and expected to continue its downside movement. The pair is trading below its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is heading downward.

Therefore, as long as 110.25 holds on the upside, look for a further decline to 109.35 and even to 109.00 in extension.

Alternatively, if the price moves in the opposite direction, a long position is recommended above 110.25 with a target at 110.80.

Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position while the price below the pivot point is a signal for a short position. The red lines showthe support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy: SELL, Stop Loss: 110.25, Take Profit: 109.35

Resistance levels: 109.35, 109.00, and 108.50 Support Levels: 110.55, 110.80, 111.15

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