Morning Report

The USD/JPY pair continued to be pressured to the downside as it was limited between 89.00 and 88.60 where the latter is providing a good support for the pair. Bullish signs continue to emerge on momentum indicators making us believe the pair is to build a solid base at the mentioned support before rebounding to the upside to target 90.40 and then far off towards the key resistance for the downside channel at 93.75. The short term trend remains to the upside as far as 88.15 remains intact on the four hour charts.

The trading range for today is among the key support at 87.15 and the key resistance at 93.75

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 88.60 to 89.70 and stop loss below 88.00 might be appropriate.