USD/JPY: technical analysis 03.06.20
USD/JPY quotes attempted to continue the upward dynamic, but reaching 108.844 mark moved to a downward correction. At the moment the price has met the support at the level of 108.419. The breakdown of this level will give a prospect of decline to the area of 108.203-108.008 support area. Judging by the downward reversal of the Stochastic this case scenario is possible soon.
The upward rebound from 108.419 and pullback above 108.594 will let the price grow to the area of 108.789 resistance. This level can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, the decisive breakout of 108.800 will be a signal of the upward trend resumption and let the price grow to the area of 108.984-109.100.
Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.
Bollinger Bands are diverging on the background of bullish momentum.
MACD is growing in a positive zone.
Stochastic is preparing to exit the overbought zone and is directed downwards, signaling the development of a downward correction.
Support and resistance
Support levels: 108.398, 108.203, 108.008.
Resistance levels: 108.594, 108.789, 108.984, 109.100.
Short positions can be opened below the level of 108.398 with the target at around 108.203-108.100 and stop-loss at 108.500.
Long positions can be opened above the level of 108.594 with the target at around 108.900 and stop-loss at 108.500.