Morning Report

The USD/JPY pair declined yesterday after touching the 38.2% correction at 91.40; where we see the formation of a bearish technical pattern on the secondary image with a neckline at 90.75 waiting to be breached. Breaking this level will take the pair below 90.00 to target 89.35 – 89.00. From here we expect the pair is to decline on the intraday basis as far as 91.80 remains intact. Stochastic indicator is showing volatile trading with the attempt of breaching the neckline due to oversold signs.

The trading range for today is among the key support at 88.40 and the key resistance at 94.70

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 selling the pair with the breach of 90.75 to 89.35 and stop loss above 91.80 might be appropriate.