FX.co ★ Technical analysis of USD/JPY for January 23, 2017

USD/JPY is under pressure. The pair is staying below its key resistance at 114.00 and remains on the downside. Moreover, the bearish cross between 20-period and 50-period moving averages has been identified. Furthermore, the relative strength index is capped by the descending trend line and is below its neutrality at 50.

To sum up, as long as 114.00 holds as resistance, look for a further drop to 113.15 and even 112.85 in extension.

Recommendation:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 113.15. A break below this target will move the pair further downwards to 112.85. The pivot point stands at 114. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 114.40 and the second one at 114.80.

Resistance levels: 114.40, 114.80 , 115.15

Support levels: 113.15 , 112.85, 112.40