USD/JPY: technical analysis 02.10.2019

Current trend

The USD/JPY pair begins today’s trading with slight bullish bias due to correction. At the moment the price has met the resistance at the level of 107.888. The consolidation above it will give the prospect of growth to the levels of 107.960, which is the key target of upward correction. There is a chance of an downward rebound, while its breakout would allow the raise to continue to the 108.203 level (Murray [6/8]). Alternative scenario. Pullbacks and pair’s sustained trading below 107.813 (Murray [4/8]) could lead to the 107.617 (Murray [3/8]) mark. A significant decrease is possible after the breakout of the level 107.617. In this case, the sellers will aim for the level of 107.422 (Murray [2/8]) support zone. The technical picture is mixed. Bollinger Bands are pointed sideways. MACD volumes are decreasing in the positive zone. Stochastic is preparing to exit the oversold zone and is directed upwards, signaling the development of an upward correction.

Support and resistance

Support levels: 107.813, 107.617, 107.422.
Resistance levels: 107.960, 108.203, 108.398.

Trading recommendations

Long positions can be opened above the level of 107.960 with the target at around 108.203 and stop-loss 107.879.
Short positions can be opened below the level of 107.617 with the target at around 107.422 and stop-loss 107.987.

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