USD/JPY is under pressure. The pair recorded a succession of lower tops and lower bottoms, which confirmed a bearish outlook. The descending 50-period moving average acts as resistance, which should continue to push the prices lower. Furthermore, 104.20 represents a key resistance, and the upside potential should be limited by this level. In these perspectives, as long as this level is not broken above, the pair is likely to pull back to its next level at 103.15 and even 102.75 in extension.

Trading Recommendation: The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 103.15. A break below this target will move the pair further downwards to 102.75. The pivot point stands at 104.20. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 103.15 and the second one at 102.75.

Resistance levels: 104.50, 104.85, 105.35

Support levels: 103.15, 102.75, 102.40