USD/JPY continues to move lower on the weak US Dollar. The pair is currently trading at 105.24 which is also a multi-day trend line support area. As the investors wait for the FOMC interest rate decision a breach below this support area is likely to send the pair further lower towards 104.80 and 104.65 levels. The intraday resistance is at 105.50 while stronger resistances are present at 106.00 and 106.22 areas.

The pair is currently keeping below the Mid Bollinger Band. The RSI is at 43 and supportive to the bears. The MACD is below zero line and favors the bears as well. The SMA-21 indicates a resistance area at 105.97 while the SMA-50 is showing a resistance area at 106.16. The price pattern is strongly bearish, however, the current price (105.24) is at a multi-day support line and a sell position only favored if the pair closes below this level on the 4-hourly chart. The take-profit would be at 104.70 while an ideal stop-loss would be just above the 105.50 resistance level.

An intraday closing below 105.00 is likely to accelerate the downtrend. On the upside, only closing above 106.20 would provide some space to the bulls.

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By LCMS Traders FX Analysis Team

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