USDJPY breaches the resistance – Analysis - 23-08-2018

The USDJPY pair rallied upwards strongly yesterday to breach 110.60 level and touched the bearish channel’s resistance that appears on the chart, accompanied by witnessing clear overbought signals through stochastic, to keep the chances valid to resume the bearish trend, organized inside the mentioned channel.

Therefore, we will continue to suggest the bearish trend for today conditioned by the price stability below 110.85, as breaching this level will push the price to test the most important resistance at 111.32 before determining the next trend clearly, noting that breaking 110.60 is required to confirm resuming the bearish trend that its targets begin at 110.04 and extend to 109.00.

Expected trading range for today is between 110.00 support and 111.32 resistance

Expected trend for today: Bearish