USD/JPY is expected to trade with a bearish bias as key resistance remains at 102.00. The pair remains range-bound between the key resistance at 102.00 (a key support seen in July 29--August 2) and the first downside target at 100.65 (the low of August 2). Currently, the pair is around both the 20-period (30-minute chart) and 50-period moving averages, while the intraday relative strength index is still above 50 showing a lack of downward momentum. However, as long as 102.00 is not surpassed, the pair stands a chance of retesting 100.65 and the psychological level of 100.00.
Trading Recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 100.65. A break below this target will move the pair further downwards to 100.00. The pivot point stands at 102.00. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 102.85 and the second one at 103.95.
Resistance levels: 102.85, 103.95, 104.60
Support levels: 100.65, 100.00, 99.55
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