USD/JPY: technical analysis 11.09.2019

USD/JPY: technical analysis 11.09.2019

Current trend

On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands. At the moment the price is testing the resistance at the level of 107.813 (Murray [4/8]). The breakout of 107.813 can accelerate the pair towards 108.203 (Murray [5/8]).
Alternative scenario.
If USD/JPY cannot consolidate above the level of 107.813 during short term period, the downward correction and retest of the level 107.559, 107.422 (Murray [3/8]) are possible. The downward trend will be restored after the price is set below the level of 107.225, which is the middle line of Bollinger Bands. In this case, the next targets of sellers will be the level of 107.031 (Murray [2/8]). Technical indicators reflect the maintenance of the upward potential. Bollinger Bands are diverging on the background of bullish momentum. The volumes of MACD histogram are growing in the positive zone. Stochastic is in the overbough zone and is pointed sideways.

Support and resistance

Support levels: 107.559, 107.422, 107.225.
Resistance levels: 107.813, 108.203, 108.594.

Trading recommendations

Long positions can be opened above the level of 107.813 with the target at around 108.203 and stop-loss 107.679.
Short positions can be opened below the level of 107.559 with the target at around 107.422-107.225 and stop-loss 108.665.