USDJPY loses momentum – Analysis - 18-04-2017

The USDJPY pair provided slight bullish bias yesterday after hitting the bearish channel’s support that appears in the image, noticing that stochastic loses its positive momentum clearly to reach the overbought levels, accompanied with the price approach from the EMA50, which forms good resistance against the intraday and short term trading.

Therefore, these factors encourage us to keep preferring the bearish trend in the upcoming sessions, waiting for breaking 108.00 level to confirm the extension of the bearish wave to 106.63, being aware that breaching 109.65 will push the price to extend its gains and testing 111.65 levels before any new attempt to decline. 

Expected trading range for today is between 108.00 support and 109.65 resistance.

Expected trend for today: Bearish