Morning Report

The USD/JPY pair breached the key resistance for the downside channel, and as we see in the image above; the stochastic indicator is showing the pair being overbought, which may pressure for a slight decline to retest the previously breached key resistance (currently at 92.60), before rebounding to the upside targeting 95.00. Note that the short term trend remains to the downside and this incline may be nothing more than a correction. A four hour closing below 92.60 will continue the decline without the need for a correction.

The trading range for today is among the key support at 90.00 and the key resistance at 95.10

The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60

RecommendationBased on the charts and explanations above, our opinion is buying the pair from 92.60 to 94.25 and stop loss below 91.90 might be appropriate.