USD/JPY: technical analysis 04.12.2019
On the 4-hour chart, the instrument is slightly correcting up from the 108.481 support, but the downward trend is still maintained. If the "bulls" manage to raise the rate above the level of 108.675, the correction can continue to the area of 108.789. This level is an important line of resistance to watch in the short term period. The breakout of it will be a signal for price reversal and let the price resume upward movement towards 109.000.
With its failure to cross 108.675 resistance, USD/JPY will drop back towards 108.481 support. The downward trend will be restored after the price is set below the level of 108.398.
In this case, the next targets of sellers will be the level of 108.203.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.
Bollinger Bands diverge indicating the preservation of the decreasing tendency.
The volumes of MACD histogram are growing in the negative zone.
Stochastic is in the oversold zone pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 108.398, 108.203, 108.008.
Resistance levels: 108.675, 108.789, 108.984.
Short positions can be opened below the level of 108.398 with the target at around 108.203 and stop-loss at 108.468.
Long positions can be opened above the level of 108.675 with the target at around 108.789-108.984 and stop-loss at 108.572.