Morning Report

The USD/JPY pair was able to breach the key resistance for the minor downside channel as it nears the pivot resistance 90.40, where we still believe the pair is to breach this level to targeting 94.00. Note that the stochastic indicator is starting to provide a bearish cross over; to pressure the pair to retest the previously breached level 89.85 before rebounding back to the upside today. The 88.50 level must remain intact for the short term uptrend to continue.

The trading range for today is among the key support at 87.30 and the key resistance at 94.00

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 90.40 to 91.60 and stop loss below 89.55 might be appropriate.