USDJPY tests the support – Analysis - 13-10-2017

The USDJPY pair found solid resistance formed by the EMA50 at 112.45, to trade negatively and test the key support 112.00, noting that this level represents 23.6% Fibonacci correction level for the rise measured from 107.31 to 113.44, which means that breaking it will push the price to extend its bearish correction towards 111.10 and might extend to 110.38 before any new attempt to rise.

Therefore, we prefer staying aside temporarily in order to monitor the price behavior according to the key levels represented by 112.00 support and 112.45 resistance, noting that breaching this resistance will allow the price to regain its bullish track that its targets begin at 113.44 and extend to 114.49.

Expected trading range for today is between 111.00 support and 113.00 resistance.

Expected trend for today: Depends on the above mentioned levels