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USD/JPY: technical analysis 10.10.2019

Current trend

USD/JPY quotes attempted to grow, but reaching 107.770 resistance mark moved to a downward correction. If the sellers manage to decline the rate below the level of 107.422, the correction can continue to the area of 107.218 which coincided with the middle line of Bollinger Bands. Should prices continue slipping under 107.218, the level of 107.031 might try activating a upward reboud. The upward movement will be restored after the price is set above the level of 107.617. In this case, the next targets of buyers will be the level of 107.813 (Murray [4/8]), which is the key level for the short term period. There is a chance of an downward rebound, while its breakout would indicate up trend resumption. In this case, USD/JPY will have its sights on resistance at 108.000.
Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. Bollinger Bands are pointed upwards. MACD is slowly growing in the positive zone. Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 107.422, 107.227, 107.031.
Resistance levels: 107.617, 107.813,108.000.

Trading recommendations

Long positions can be opened above the level of 107.617 with the target at around 107.813-107.900 and stop-loss 107.522.
Short positions can be opened below the level of 107.422 with the target at around 107.227-107.100 and stop-loss 107.529.

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