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USD/JPY: technical analysis 01.10.2019

Current trend

On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands. The price went up above the level of 108.203 (Murray [6/8]) and can grow further to the levels of 108.398 (Murray [7/8]). However, overbought Stochastic and barrier 108.292 could challenge the pair’s upside. Pullback below the level of 108.203 and pair’s sustained trading below it will let the price fall tom the level of 108.008 (Murray [5/8])-107.900. The area of 107.900, which is the middle line of Bollinger Bands, can prevent the instrument from falling, as the possibility of the reverse of the price is high there. Meanwhile, breakdown of 107.900 mark may be a start for the formation of an downtrend. In this case, the sellers will aim for the level of 107.813 (Murray [4/8])-107.740. Technical indicators mostly keep a buy signal but the upward correction is possible in the short term. Bollinger Bands are converging on the background of bullish momentum. MACD is actively growing in the positive zone. Stochastic is in the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 108.203, 108.008, 107.813.
Resistance levels: 108.293, 108.398, 108.594.

Trading recommendations

Long positions can be opened above the level of 108.293 with the target at around 108.398-108.594. and stop-loss 108.192.
Short positions can be opened below the level of 108.203 with the target at around 108.008-107.900 and stop-loss 108.303.

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