USD/JPY: technical analysis 07.02.2019

USD/JPY: technical analysis 07.02.2019

Current trend

USD against the Japanese yen continues to consolidate in the side channel after a significant raise over the last week. Now the price is trading above 109.87 mark, which is the middle line of Bollinger Bands.
The technical picture is mixed. Bollinger Bands are pointed sideways, reflecting the relative calmness of the markets and sideways movement of the price. MACD is slowly growing in the positive zone. Stochastics lines are pointed downwards.

If the buyers manage to raise the rate above the level of 110.15 (Murray [6/8]) , the raise can continue to the area of 110.54 (Murray [7/8]), 110.93 (Murray [8/8]). The downward movement will be restored after the price is set below the level of 109.76. In this case, the next targets of sellers will be the level of 109.37 (Murray [4/8]).

Support and resistance

Support levels: 109.76, 109.37, 108,98.

Resistance levels: 110.15, 110.54, 110.93.

Trading recommendations

Long positions can be opened above the level of 110.15 with the target at around 110.54-110.93 and stop-loss 109.90.

Short positions can be opened below the level of 109.76 with the target at around 109.27-108.98 and stop-loss 110.00.