USD/JPY: technical analysis 09.04.20
USD/JPY is in the stage of a downward correction after growing to the level of 109.058. The instrument is now trying to consolidate below the level of 108.900, which coincided with the middle line of Bollinger Bands. In case the pair manage to cross this support, the decline to the area of 108.594 can develop. The area of this level can prevent the instrument from falling, as the possibility of the reverse of the price is high there. Meanwhile, the breakdown of the 108.500 level will accelerate the plunge to the area of 108.178 support.
The upward rebound from 108.900 and pullback above 109.058 will be a sign of the upward trend resumption and let the price test the 109.272-109.375 resistance-zone. The upper border of this channel seems to strong resistance. There is a high chance of a downward rebound, while its breakout would give a prospect of growth to the area of 109.500-109.800.
The technical picture is mixed.
Bollinger Bands are pointed sideways.
MACD volumes are decreasing in the positive zone.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 108.900, 108.594, 108.178.
Resistance levels: 109.058, 109.272, 109.375, 109.500.
Short positions can be opened below the level of 108.900 with the target at around 108.594 and stop-loss at 109.000.
Long positions can be opened above the level of 109.375 with the target at around 109.500-109.700 and stop-loss at 109.270.