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Current trend

On the 4-hour chart, the pair shows a positive dynamic. The lack of long-term corrections reflects the strength of the current trend. At the moment the price has met the resistance at the level of 108.789. Assuming the pair’s ability to cross this level, the marks of 108.874 can be targeted if holding long positions. The area of 108.984-109.062 seems a strong resistance area, which can activate a price reverse. Meanwhile, the decisive break of 109.062 could trigger a pair’s fresh run-up to a 3-month high surrounding 109.180.
Alternative scenario.
If USD/JPY cannot consolidate above the level of 108.789 during the short term period, the downward movement restoration and retest of the support level 108.594 are possible. The downward trend will be restored after the price is set below this level. In this case, the next targets of sellers will be the level of 108.398.
Technical indicators reflect the maintenance of the current upward trend. Bollinger Bands are diverging on the background of bullish momentum. MACD is slowly growing in the positive zone. Stochastic is in the overbought zone and is pointed sideways.

Support and resistance

Support levels: 108.594, 108.398, 108.203.
Resistance levels: 108.789, 108.984, 109.180.

Trading recommendations

Long positions can be opened above the level of 108.789 with the target at around 108.984-109.180 and stop-loss 108.658.
Short positions can be opened below the level of 108.594 with the target at around 108.398-108.203 and stop-loss 108.724.

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