At the end of last week the pair USD/JPY had reached local highs of 103.75 but failed to consolidate there, and at the closing session the pair fell to the level of 103.25. Until Tuesday the pair had traded in the narrow range, and then the price fell below the level of 103.00. Today, the pair USD/JPY tried to regain lost positions but was not able to overcome the line 50.0% of Fibonacci retracement. At the moment the pair is trading at the level of 102.90. Most technical indicators show the decline. Stochastic is above the middle zone, both of its lines are directed downwards, indicating further decline. Histogram and the signal line of MACD are in the negative zone; however the signal line is directed sideways, demonstrating a chance of correction. All three moving average lines are above the price chart, which is a signal of decline.
Levels of support and resistance
Support levels: 102.90, 102.75, 102.60 and 102.50. The latter one is the key level of the “bears”. Resistance levels: 103.00, 103.10, 103.35 and 103.35.
The pair is likely to go down. Short positions can be placed below the level of 102.80. However, the pair may experience correction, and in this case it is recommended to place limit orders to sell at the level of 103.15.
Analyst of LiteForex Group of Companies