USDJPY under the negative pressure – Analysis - 16-02-2017

The USDJPY pair bounced lower after approaching from 115.00 barrier, to press on 113.97 level and moves below it now, which provides signals for the price attempt to decline again, especially that the minor bullish channel that appears in the image forms potential bearish continuation flag’s pattern, which supports the chances for the price return to the main bearish channel.

On the other hand, the EMA50 provides positive support for the price, while stochastic reaches the oversold levels, which might assist to push the price to recover, therefore, this contradiction between the technical factors make us prefer staying aside temporarily until the price confirm its next trend clearly, by breaching on of the critical levels that represented by 112.90 support and 113.97 resistance.

Note that breaking the mentioned support will confirm the return of the bearish track that its targets located at 111.60 and extend to reach 110.00, while breaching 113.97 will reactivate the short term bullish scenario that targets testing 118.00 levels mainly.

Expected trading range for today is between 112.70 support and 114.80 resistance.

Expected trend for today: Depends on the above mentioned levels