USD/JPY is expected to trade in lower range as key resistance is at 111. The pair is capped by a bearish trend line since March 30, which confirms a negative outlook. The declining 50-period moving average plays a resistance role and maintains the downside potential. The upside potential should be limited by the key resistance at 111.

To sum up, as long as this key level is not surpassed, look for a new drop to 110.25 and even to 110.05 in extension.

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 110.25. A break below this target will move the pair further downwards to 110.05. The pivot point stands at 111.00. If 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 111.25 and the second one at 111.50.

Resistance levels: 111.25, 111.50, and 111.75

Support levels: 110.25, 110.05, and 109.75