Technical analysis of USD/JPY for January 02, 2017

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All our targets, which we predicted yesterday, have been hit. USD/JPY is still under pressure. Despite the recent rebound, the pair is still trading below its declining 50-period moving average. The relative strength index is mixed with bearish bias.

Therefore, as long as 112.55 is not surpassed, look for a further decline with targets at 112.00 and 111.70 in extension.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.55 with a target of 112.80.

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 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: 112.55, Take Profit: 112.00

Resistance levels: 112.80, 113.00 and 113.35 Support Levels: 112.00, 111.70, 111.50

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