USD/JPY: technical analysis 26.11.2019Published: 26 november 2019
USD/JPY quotes attempted to grow, but reaching 109.202 mark moved to a decline. At the moment the pair has met the support at the area 108.984-108.921. The breakdown of the lower border will let the price to decline to 108.789-108.710 area. This area seems a key target of the downward correction and can restrict further decline. However, the breakdown and pair’s sustained trading below 108.710 level will be a signal for downward trend resumption and give a prospect of falling to the level of 108.594.
The rebound from 108.984 will let the price to retest the 109.202 resistance. The decisive break of this level is needed to indicate uptrend resumption. In this case, the next targets of buyers will be the level of 109.375-109.482.
The technical picture is mixed.
Bollinger Bands are diverging on the background of bullish momentum.
The volumes of MACD histogram are growing in a positive zone.
Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 109.984, 108.789, 108.594.
Resistance levels: 109.180, 109.375, 109.482.
Short positions can be opened below the level of 108.911 with the target at around 108.789-108.594 and stop-loss at 108.894.
Long positions can be opened above the level of 109.202 with the target at around 109.482 and stop-loss at 109.108.