Technical analysis of USD/JPY for November 20, 2017

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USD/JPY is under pressure.The technical outlook of the pair is negative as the prices recorded lower tops and lower bottoms since November 16. The downward momentum is further reinforced by both declining 20-period and 50-period moving averages. The relative strength index is capped by a falling trend line since November 16.

To conclude, below 112.50, look for a further drop with targets at 111.95 and 111.75 in extension.

Alternatively, if the price moves in the opposite direction, a long position is recommended below 112.50 with a target at 111.95.

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 show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy: SELL, Stop Loss: 112.50, Take Profit: 111.95

Resistance levels: 112.70, 113.00 and 113.45 Support Levels: 111.95, 111.75, 112.15

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