Daily analysis of USD/JPY for February 23, 2018

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Overview

The USD/JPY pair traded with clear negativity yesterday to settle below 23.6% Fibonacci correction level for the decline from 113.37 to 105.54, which puts the price under negative pressure that might return trades to the main bearish trend again. However, on the other hand, stochastic shows clear positive signals that might help the price recover and show more bullish correction, especially that the price is still out of the main bearish channel that appears on the chart. Therefore, we prefer to stay aside until we get a clearer signal for the next trend. A breach of 107.40 will make the price resume the correctional bullish track with the next target located at 108.53. A break of 106.30 represents the key to returning to the main bearish trend with its main targets beginning at 105.54. The expected trading range for today is between the 106.00 support and the 107.70 resistance.

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