Morning Report

The USD/JPY pair surged to the upside yesterday within a minor bearish channel, which delayed the pair from reaching the key support for the key bullish channel currently residing at 89.85. The stochastic indicator is showing a bearish crossover, which may take the pair to the mentioned key support before rebounding back to the upside targeting 92.00. This uptrend remains valid as far as 89.85 is intact on the four hour charts.

The trading range for today is among the key support at 86.75 and the key resistance at 93.30

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 89.85 to 91.30 and stop loss below 88.90 might be appropriate.