USD/JPY is under pressure. The pair reversed a trajectory to the downside after peaking at 113.08 yesterday (December 4). Currently, it remains on the downside while being capped by a descending 20-period moving average, which has crossed below the 50-period one. The relative strength index is badly directed below the neutrality level of 50, indicating further downward momentum for the pair. In fact, the pair has nearly filled up the bullish gap produced at the opening yesterday and is proceeding toward the immediate support at 112.90.
Alternatively, if the price moves in the opposite direction, a long position is recommended above 112.90 with a target of 113.25.
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: 112.90, Take Profit: 112.10
Resistance levels: 113.25, 113.65 and 114.00 Support Levels: 112.10, 111.70, 111.35
The material has been provided by InstaForex Company - www.instaforex.com