USD/JPY: technical analysis 05.04.2018


Current trend

On the 4-hour chart, USD/JPY is growing along the upper line of the Bollinger Bands and testing the resistance level of 107.03 (Murray [6/8]).

The lack of long-term corrections reflects the strength of the current trend.

Breakout will let the price to grow to the area of 107.42 (Murray [7/8])-107.81 (Murray [8/8]), where is a high chance of a downward reverse.

If USD/JPY cannot consolidate above the level of 107.03, the downward correction and test of the level 106.41 (middle line of Bollinger Bands) are possible.

Technical indicators mostly keep a buy signal.

Bollinger Bands are diverging, reflecting the active development of the current upward trend.

MACD is growing in the positive zone.

Stochastic is located in the overbought zone and is directed downwards, signaling the development of a downward correction.

Support and resistance

Support levels: 106.64, 106.25, 105.85,

Resistance levels: 107.03, 107.42, 107.81.

Trading recommendations

Long positions can be opened above the level of 107.03 with the target at around 107.42-107.81 and stop loss 106.90.

Short positions can be opened below the level of 106.82 with the target at around 106.41-106.25 and stop loss 107.00.