The USD/JPY pair is under pressure. The US dollar continued to rise against other most major currencies as investors kept expecting the Federal Reserve to raise interest rates in December. The Wall Street Journal Dollar Index gained another 0.3% to 90.54. EUR/USD hovered around its 7-month low of 1.0620 and once moved as low as 1.0591. The GBP/USD pair lost 0.4% to 1.5122. Meanwhile, USD/CHF reached as high as 1.0225, which was last seen in January just before the Swiss central bank abandoned the peg between the euro and the Swiss franc. The pair encountered resistance after the level of 123.26 was reached yesterday. Since then it has entered a consolidation zone and is currently trading around the 20-period moving average, which has crossed below the 50-period one. The relative strength index is still below the neutrality level of 50. As long as 123.05 holds as the key resistance level, the pair is expected to return to 122.35 (a base seen on November 20).

Trading recommendations:

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 122.35. A break of that target will move the pair further downwards to 122.20. The pivot point stands at 123.05. 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 123.25 and the second target at 123.40.

Resistance levels: 123.25 123.40 123.60

Support levels: 122.35 122.20 122