USDJPY tests the support – Analysis - 20-02-2017

The USDJPY pair tested the critical support base that formed above the previously breached resistance of the bearish channel that appears in the image, this support declines now to 112.50, forming one of the next trend keys besides 113.97 resistance, as we mentioned in our last report, the price needs to breach one of these levels to detect its next trend clearly, which makes us remain neutral until now.

The contradiction between stochastic positivity and the EMA50 negativity provides another reason for the neutrality, pointing that breaking 112.50 level will push the price to regain the bearish track that its targets begin at 111.60 and extend to reach 110.00, while breaching 113.97 level will allow the price to achieve short term gains, to reach the main target at 118.00.

Expected trading range for today is between 112.00 support and 114.20 resistance.

Expected trend for today: Depends on the above mentioned levels