USD/JPY: technical analysis 09.01.20
On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands. At the moment the price has met the resistance at the level of 109.232. Assuming the pair’s ability to cross this mark, the level of 109.375 can be targeted if holding long positions.
This level seems a strong resistance that can activate a downward reverse. Meanwhile, the breakout of 109.375 can accelerate the pair towards 109.570.
The pullback below 109.143 support will be a sign of downward correction formation and let the price decline to 108.984 support. The breakdown of this level and sustained trading below it will give a prospect of falling to 108.789 support.
Technical indicators mostly keep a buy signal but the downward correction is possible in the short term.
Bollinger Bands are diverging on the background of bullish momentum.
MACD is growing in a positive zone.
Stochastic is in the oversold area and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 09.143, 108.984, 108.789.
Resistance levels: 109.249, 109.375, 109.570.
Short positions can be opened below the level of 109.143 with the target at around108.984-108.789 and stop-loss at 109.273.
Long positions can be opened above the level of 109.249 with the target at around 109.570 and stop-loss at 109.142.