USDJPY faces negative pressure – Analysis - 23-02-2018

The USDJPY pair traded with clear negativity yesterday to settle below 23.6% Fibonacci correction level for the decline measured from 113.37 to 105.54, which puts the price under negative pressure that might push trades to return to the main bearish trend again, but on the other hand, stochastic shows clear positive signals that might assist to push the price to recover and show more bullish correction, especially that the price still out of the main bearish channel that appears on the chart.

Therefore, we prefer staying aside until we get clearer signal for the next trend, noting that breaching 107.40 will push the price to resume the correctional bullish track that its next target located at 108.53, while breaking 106.30 represents the key to return to the main bearish trend that its main targets begin at 105.54.

Expected trading range for today is between 106.00 support and 107.70 resistance.

Expected trend for today: Depends on the above mentioned levels