Today we direct our attention to the USD/JPY currency pair. Right now this pair seems to struggle a bit in overcoming the pivot point at 111.75 and is trading below it. It’s likely that the pair won’t make significant gains today, as both the moving average and the relative strength index are not looking great. In fact, we expect that the pair will continue its decline and even touch the nearby support levels at 110.30 and 109.90 below it.
Since the USD/JPY remains below this key level at 111.75, we expect it to move toward lower values and sink to the support levels mentioned above. The proper course of action in this case would be to go short, using our support levels at 110.30 and 109.90 as targets. However, if the pair somehow manages to overcome the pivot point and starts trading above 111.75, then it will have the potential for further growth. With a rising trend you can safely go long and use the resistance levels at 112.20 and 112.55 as targets.
At the moment of the publication of this article the USD/JPY is trading at around 110.60, well below the pivot point and its way to the first support level. The most important technical indicators agree on a strong sell signal here.
