FXWIREPRO: Risk Aversion Weighs on USD/JPY, Downside Likely to Test 112.30 Levels

FXWIREPRO: Risk Aversion Weighs on USD/JPY, Downside Likely to Test 112.30 Levels

• Worse-than expected Chinese trade figures and oil price sell-off continues to weigh on market sentiment.
• USD/JPY largely range-bound in the Asian session, after two consecutive day's of losses.
• The pair find strong support at 42 levels and we see a Doji formation at lows.
• Daily technicals support further downside, breaks below 112.42 could see test of 112.30 and then 112.15 levels.
• Immediate resistance is seen at 113 (Feb 23rd highs) , while support on the downside is seen at 112.30 (Feb 19th lows).
• Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-breaks-major-support-at-11345-support-good-to-sell-rallies-174388) has hit initial target.

Recommendation: Book partial profits, lower trailing stops to 113 levels, target 112.30/112.15

The material has been provided by InstaForex Company - www.instaforex.com