USD/JPY: technical analysis 12.08.2019

USD/JPY: technical analysis 12.08.2019

Current trend

On the 4-hour chart, USD/JPY is falling along the lower line of the Bollinger Bands. The lack of long-term corrections reflects the strength of the current trend. The price went down below the level of 105.469 (Murray [-1/8]) and can fall further to the support levels of 105.228 and 104.900. The key level for the sellers will be the 104.688 (Murray [-2/8]) mark. There is a high chance of an upward rebound, while its breakdown would allow the fall to continue. Alternative scenario. If the “bulls” manage to raise the rate above the level of 105.687, the correction can continue to the area of 105.871, which coincided with the middle line of Bollinger Bands. The breakout of the level 105.871 can accelerate the pair towards 106.007-106.250 (Murray [0/8]). Technical indicators reflect the moderate maintenance of the current downward trend. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic’s lines are pointed downwards and are reaching the oversold area.

Support and resistance

Support levels: 105.374, 105.228, 104.900, 104.688.
Resistance levels: 105.687, 105.871, 106.007.

Trading recommendations

Short positions can be opened below the level of 105.374 with the target at around 105.228-104.900 and stop-loss 105.532.
Long positions can be opened above the level of 105.687 with the target at around 105.871-106.007 and stop-loss 105.580.