USDJPY attempts positively – Analysis - 01-05-2017

The USDJPY pair is testing the key resistance 111.65 now, which represents the previously broken neckline of the double top pattern that appears on chart, thus, holding below this level will keep the negative scenario valid, supported by stochastic loss to its positive momentum gradually.

On the other hand, we notice that the price completed forming inverted head and shoulders' pattern that its confirmation line located at 111.65 too, which means that breaching it will push the price to turn its intraday and short term track upwards, noting that the EMA50 provides positive support to the price.

Therefore, this contradiction between the technical factors makes us prefer staying aside temporarily in order to monitor the price behavior according to the key levels represented by 110.50 support and 111.65 resistance, waiting to breach one of them to detect its next destination clearly.

Expected trading range for today is between 110.50 support and 112.70 resistance.

Expected trend for today: Depends on the above mentioned levels