USD/JPY: technical analysis 13.06.2019

USD/JPY: technical analysis 13.06.2019

Current trend

The USD/JPY pair begins today’s trading with slight bearish bias. The price has tested the support level of 108.20 (Murray [5/8]) and was slightly corrected upwards, but the downward trend maintains. If the price is set below the level of 108.20, the downward trend can restore, and the instrument can retest the resistance level of 107.81 (Murray [4/8]), which is the key level for the sellers in short-term period. Aternatively, the breakout of the level 108.59 (Murray [6/8]) will let the price grow to the level of 108.98 (Murray [7/8]). Meanwhile, any attempted recovery seems more likely to get sold into aggressively near the 108.98 region. Technical indicators mostly reflect the moderate maintenance of the downward trend. Bollinger Bands are diverging, reflecting the active development of the current trend. MACD volumes are in the negative zone and are moving along the zero line. Stochastic is poined downwards.

Support and resistance

Support levels: 108.20, 107.81, 107.42.
Resistance levels: 108.59, 108.98, 109.37.

Trading recommendations

Short positions can be opened below the level of 108.20 with the target at around 107.81 and stop-loss 108.33.
Long positions can be opened above the level of 108.59 with the target at around 108.98 and stop-loss 108.46.