The market opened above the daily resistance (105.08). It continued to move downwards from the level of 105.08 to the bottom around 104.49.
Today, the first resistance level is seen at 105.08 followed by 105.78, while daily support 1 is seen at 104.19.
The USD/JPY pair broke support which turned to strong resistance at 105.08. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (105.08) which is expected to act as major resistance today.
This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment.
Amid the previous events, the USD/JPY pair is still moving between the levels of 105.08 and 102.61, so we expect a range of 247 pips in coming days.
Therefore, the major resistance can be found at 105.08 providing a clear signal to sell with a target seen at 104.19. If the trend breaks the minor support at 103.36, the pair will move downwards continuing the bearish trend development to the level of 102.61 in order to test the daily support 2.
On upside :
The RSI is still calling for a strong bullish market as well as the current price is also above thespot of 104.19. Therefore, it will be advantageous to buy above the current level of 104.19 with the first target at 105.08 in order to retest the weekly resistance 1. From this point, if the pair closes above the weekly resistance 1 of 105.08 on the H4 chart, the USD/JPY pair may resume its movement to 105.78 to form a new double top. Overall, we still prefer the bullish scenario which suggests that the pair will stay below the area of 103.36/102.61cthis week.
The material has been provided by InstaForex Company – www.instaforex.com
🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.
As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.