USD/JPY: technical analysis 12.02.2019
On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands.
The instrument is now testing the resistance level of 110.54 (Murray [7/8]).
Breakout of 110.54 can accelerate the pair towards 110.93 (Murray [8/8]) level,
but the 111.32 (Murray [+1/8]) – 111.71 (Murray [+2/8]) resistance area and overbought Stochastic could restrict further rise.
If USD/JPY cannot consolidate above the level of 110.54, the downward trend restoration and retest of the level 110.15 (Murray [6/8]), 109.99 (middle line of Bollinger Bands) are possible.
Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.
Bollinger Bands are diverging, reflecting the active development of the current trend.
MACD is growing in the positive zone.
Stochastic is in the overbought zone and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 110.15, 109.76, 109.37.
Resistance levels: 110.54, 111.32, 111.71.
Long positions can be opened above the level of 110.54 with the target at around 111.32 and stop-loss 110.30.
Short positions can be opened below the level of 109.99 with the target at around 109.76-109.37 and stop-loss 110.20.