Technical analysis of USD/JPY for September 08, 2016
September 8, 2016 5:03 am
USD/JPY is expected to trade with a bearish bias as the key resistance is at 102.20. The pair remains under pressure below its key resistance at 102.20. The 50-period moving average is heading downward, which indicates that the prices may still have downside potential. The relative strength index is below its neutrality area at 50, and lacks upward momentum. On the economic data front, MBA mortgage applications improved by 0.9% in week ended Sept. 2, from a rise of 2.8% in the previous week. In other news, the Fed released their ‘Beige Book’ indicating a modest expansion of the national economic activity accompanied by an improvement in employment from July through late August.
In conclusion, as long as 102.20 holds on the upside, the pair is likely to drop to 101.15 at first. On a breakout, look for further decline to 100.80 as likely.
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 101.15. A break below this target will move the pair further downwards to 100.80. The pivot point stands at 102.20. In case 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 103.15 and the second one, at 103.80.
Resistance levels: 103.15, 103.80, 104.25
Support levels: 101.15, 100.80, 100.50
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/JPY is expected to trade with a bearish bias as the key resistance is at 102.20. The pair remains under pressure below its key resistance at 102.20. The 50-period moving average is heading downward, which indicates that the prices may still have downside potential. The relative strength index is below its neutrality area at 50, and lacks upward momentum. On the economic data front, MBA mortgage applications improved by 0.9% in week ended Sept. 2, from a rise of 2.8% in the previous week. In other news, the Fed released their ‘Beige Book’ indicating a modest expansion of the national economic activity accompanied by an improvement in employment from July through late August.
In conclusion, as long as 102.20 holds on the upside, the pair is likely to drop to 101.15 at first. On a breakout, look for further decline to 100.80 as likely.
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 101.15. A break below this target will move the pair further downwards to 100.80. The pivot point stands at 102.20. In case 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 103.15 and the second one, at 103.80.
Resistance levels: 103.15, 103.80, 104.25
Support levels: 101.15, 100.80, 100.50
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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