USD/JPY: technical analysis 16.05.2019

USD/JPY: technical analysis 16.05.2019

Current trend

The USD/JPY pair begins today’s trading with slight bearish bias. The instrument is now testing the support level of 109.37, which coincided with the middle line of Bollinger Bands. If the “bears” manage to decline the rate below the level of 109.37, the fall can continue to the area of 108.98 (Murray [-1/8]). There is a high chance of an upward rebound from the level of 109.37, while its breakdown would allow the fall to continue to the level 108.59 (Murray [-2/8]). Alternatively, pullback above the level of 109.76 (Murray [1/8]) can accelerate the pair towards the area of 110.15 (Murray [2/8])-110.54 (Murray [3/8]). Technical indicators mostly maintain a sell signal. Bollinger Bands are slightly leaned downwards, reflecting the moderate developing of the downward trend. Stochastic is pointed downwards. MACD histogram are slowly decreasing in the negative zone.

Support and resistance

Support levels: 109.37, 108.98, 108.59.
Resistance levels: 109.76, 110.15, 110.54.

Trading recommendations

Short positions can be opened below the level of 109.37 with the target at around 108.98 and stop-loss 109.50.
Long positions can be opened above the level of 109.76 with the target at around 110.15 and stop-loss 109.64.