USDJPY tests the resistance – Analysis - 19-01-2017

The USDJPY pair provided clear positive trading yesterday to approach from the minor bearish channel's resistance that appears on chart, to move according to the trading rules inside the channels after touching this channel's support recently, noticing that the EMA50 forms good resistance that stops the bullish rally, while stochastic shows big overbought signals.

Therefore, these signals support the chances of continuing the decline in the upcoming period, and breaking 113.97 level will confirm heading towards the suggested bearish wave targets that start at 111.97 and extend to 109.90, takin into consideration that breaching 115.15 will stop the negative overview and lead the price to rally bullishly towards 118.20 initially.

Expected trading range for today is between 113.00 support and 115.15 resistance.

Expected trend for today: Bearish