USD/JPY: technical analysis 12.12.19
On the 4-hour chart, the instrument is correcting up from the lower line of the Bollinger Bands and approaching strong support in the region of 108.594-108.620. This area is coincided with the middle line of Bollinger Bands and can activate a downward rebound. However, the decisive break of 108.620 is needed to indicate uptrend resumption. In this case, the buyers will aim for the level of 108.789-108.850.
The rebound from 108.594 and pullback below 108.520 could lead the price back to 108.398 support.
One may speak about downward movement continuation after the price consolidates below the support level of 108.350. In this case, the next targets of sellers will be the level of 108.203-108.008.
The technical picture is mixed.
Bollinger Bands are pointed sideways.
MACD is growing in the negative zone.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Resistance: 108.594, 108.789, 108.984.
Support: 108.398, 108.203, 108.008.
Short positions can be opened below the level of 108.510 with the target at around 108.398-108.203 and stop-loss at 108.610.
Long positions can be opened above the level of 108.630 with the target at around 108.789-108.900 and stop-loss at 108.530.