USD/JPY Technical Analysis: Stuck in a range

• The USD/JPY pair has charted a sideways trading range on the hourly chart.
• The psychological support for 112.00 is proving a tough nut to crack for the third straight day, which indicates the sell-off from the recent high of 114.55 has likely run out of steam.
• As a result, the pair could see an upside break of the trendline range. At press time, the upper edge of the trading range is seen at 112.45 and the lower end is located at 111.90.
• An acceptance above 112.45 would open the doors to 113.00 (psychological level). On the other hand, an hourly close below 111.90 would signal a revival of the sell-off from 114.55 and could allow a test of 100-day exponential moving average (EMA) of 111.43.

Hourly Chart

Spot Rate: 112.07

Daily High: 112.24

Daily Low: 111.93

Trend: Bearish below 111.90

Resistance

R1: 112.45 (range hurdle)

R2: 112.70 (descending 10-day EMA)

R3: 113.00 (psychological level)

Support

S1: 111.90 (range support)

S2: 111.41 (100-day EMA)

S3: 111.00 (psychological support)