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USD/JPY: technical analysis 11.08.20

Current trend

On the 4-hour chart, the instrument keeps a moderate positive dynamic. The price is approaching a strong resistance in the region of 106.250. This level can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, the breakout of 106.250 can accelerate the growth towards 106.468-106.500.

Alternative scenario

If the price cannot consolidate above the level of 106.250 during the short-term period, the price can reverse and retest the support level of 105.970-105.859. The downward trend will be restored after the price is set below the level of 105.703, which is the middle line of Bollinger Bands. In this case, the sellers will aim for the 105.469-105.350 support area.

Technical indicators

Technical indicators maintain a buy signal.

Bollinger Bands are diverging on the background of bullish momentum.

MACD is growing in a positive zone.

Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 105.859, 105.703, 105.469.
Resistance levels: 106.250, 106.641, 107.031.

Trading recommendations

Short positions can be opened below the level of 105.703 with the target at around 105.400 and stop-loss at 105.800.
Long positions can be opened above the level of 106.250 with the target at around 106.550 and stop-loss at 106.150.

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