USDJPY retests – Analysis - 23-03-2017

The USDJPY pair succeeded to hit our main waited target at 110.85 after breaking 111.65 level yesterday and closed the daily candlestick close below it, showing some bullish bias to retest this level now, affected by stochastic current positivity, noticing that the indicator loses its positive momentum clearly approaching from the overbought levels, while the EMA50 keeps pushing negatively on the price.

Therefore, these factors encourage us to keep our bearish trend expectations in the upcoming period, targeting surpassing 110.85 level to open the way towards extending the bearish wave to 109.00 as a next main station, being aware that the continuation of the expected decline depends on the stability below 111.65 and 112.80 levels.

Expected trading range for today is between 110.00 support and 112.20 resistance.

Expected trend for today: Bearish