15:12 USD/JPY pair under pressure
USD/JPY is traded in a narrow range of Y107.90-108.05 after a sharp decline from Y108.90 to Y107.90 yesterday. USD/JPY fell below the MA (200) N1 (Y108.60) moving average, and on the four-hour chart is testing MA (200) N4 (Y108.05), signaling a possible transition to bear control. In this situation, it is worthwhile to start following the southern direction in trade and looking for points of sale.
- Resistances are at: Y108.25, Y108.50-60, Y109.05
- Support levels are on: Y107.85-90, Y107.45, Y107.00
The main scenario for the pair to move forward is a breakthrough of the sessional low of correction Y107.90 and the low of October 11 Y107.85 and a decline to Y107.45 (high of October 7)Alternative scenario assumes correction and growth to Y108.50-60 (maximum October 24, MA (200) N1)