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USD/JPY: technical analysis 20.02.20

Current trend

USD/JPY is in the stage of a downward correction after growing to the level of 111.584, but the general upward trend is still maintained. The pullback above 111.486 resistance will let the price re-test the yesterday' high surrounding 111.584 level. The breakout of this level will be a key trigger for bullish traders and give a prospect of growth to 111.719-112.109.

Alternative scenario

If the "bears" manage to decline the rate below the level of 111.106, the correction can continue to the area of 110.938-110.742.

Technical indicators

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: 111.328,111.106, 110.938, 110.742.
Resistance levels: 111.584, 111.719, 112.109.

Trading recommendations

Short positions can be opened below the level of 111.106 with the target at around 110.938-110.742 and stop-loss at 111.200.
Long positions can be opened above the level of 111.584 with the target at around 111.719-111.900 and stop-loss at 111.500.

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