USD/JPY bulls are having a stiff resistance at 105.30 despite having a bullish engulfing pattern that is formed after yesterday’s closing. The current price is at 105.22 and nearly all the technical indicators are favoring a bearish move. The immediate support level is at 105.00 while other support levels are at 104.77 and 104.62. The intraday resistance is at 105.30 another resistance is at 105.85.

The mid-Bollinger band is at 105.43, the lower Bollinger band support area is at 104.86. USD/JPY is trading below the moving averages, the SMA-14 is indicating resistance is at 105.52 and the SMA-50 is showing resistance at 105.74. The RSI line is at 45 and has a further downwards. Coming to the price pattern, the intraday and 4-hourly patterns are equally bearish and support sell entries. However, keep the narrow trading range the target would remain relatively small. A decent selling entry would be at 105.30 with a target of 104.80. The stop-loss for this trade would be just above 50 days average at 105.75.

A weekly closing below 105.00 will put the pair on a further bearish path. On the upside, closing above 105.70 would be supportive of the bulls.

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By LCMS Traders FX Analysis Team

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