USDJPY tests the resistance – Analysis - 16-06-2017

The USDJPY pair rallied higher strongly yesterday to test the bearish channel’s resistance that appears in the image at 110.95, accompanied with the issuance of big overbought signals from stochastic, which forms negative factor that we expect to motivate the price to bounce lower to resume the main bearish trend, which its targets begin by testing 109.00 level again.

Therefore, the overall bearish trend will remain preferred in the upcoming period unless breaching 110.95 level and holding above it, where breaching this level will turn the intraday track to the upside to head to test 113.97 levels before any new attempt to decline.

Expected trading range for today is between 109.50 support and 111.50 resistance.

Expected trend for today: Bearish