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Daily chart: The USDJPY is strengthening its bearish trend and now, it’s forming a higher low pattern, above the support at the 96.38 level. If the pair manages to break that level, it is expected to fall to the level of 94.53. This pair will look for the moving average of 200, because this bearish trend is getting stronger and still shows no signs of turnaround. However, we must be pending before a bullish rebound at current levels, which if done, would be expected to go up to the resistance at the 97.59 level. The MACD indicator remains in negative territory and this pair is still above the 200 day moving average.
H4 chart: This pair remains below the 200 day moving average and now, this is trying to break the support at the 95.81 level. However, the USDJPY is trying to climb back up to resistance at 97.00 If the pair manages to break that level, it is expected to rise to the level of 97.65. On the other hand, if the USDJPY breaks the 95.81 level, would be expected to drop to the level of 95.00. The MACD indicator remains in positive territory, but we must be very careful when placing orders against the trend, because this can be changed to negative territory in the coming hours.
H1 chart: The USDJPY is making a bullish rebound in the 96.02 support level. It is very likely that this pair achieves up to resistance at the 97.13 level, however, at current levels is forming a Point of Control (POC) and this may act as strong resistance for this pair and the USDJPY could fall again to the support at the level of 96.02. If the pair manages to break that level, it is expected to fall to the level of 95.62. The MACD indicator remains in positive territory, but approaching extreme overbought levels, so we must be alert to any bearish continuation of the current trend in this pair.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD/JPY pair breaks a bearish candlestick; the support level is at 96.02, take profit is at 95.62, and stop loss is at 96.42.
Source: www.instaforex.com
