USDJPY tests the resistance – Analysis - 10-04-2017

The USDJPY pair returns to test the critical resistance at 111.65, which represents the previously broken neckline of the double top pattern, which meets with the bearish channel’s resistance that appears in the image, noticing that stochastic shows clear overbought signals now, to form negative factor that supports the chances for bouncing lower in the upcoming sessions.

Therefore, we will keep preferring the overall bearish trend unless breaching 111.65 level and holding above it, which will lead the price to test 113.97 levels mainly, reminding you that the targets of the expected bearish wave begin at 109.00 and extend to 106.63.

Expected trading range for today is between 110.50 support and 112.00 resistance.

Expected trend for today: Bearish