Morning Report

The USD/JPY pair reached the expected downside target to hit the key support for the downside channel at 88.55, seen in the image above,where we expect the pair to incline on the short term basis towards 94.00; supported by positive signs on momentum indicators. The first resistance, which may be an obstacle for the pair is at 90.30, where a breakout of this level will open the way for today's target at 91.60. This incline remains as far as 88.50 is intact.

The trading range for today is among the key support at 88.00 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 buying the pair with the breach of 90.30 to 91.60 and stop loss below 89.55 might be appropriate.