USD/JPY: technical analysis 15.03.2018


Current trend

On the 4-hour chart, USD/JPY is falling along the lower line of the Bollinger Bands.

The price has tested the support level of 105.89 (Murray [3/8]) and was slightly corrected upwards, but the downward trend maintains.

There is a chance of an upward rebound from the level of 105.89, while its breakdown would allow the fall to continue.

Technical indicators mostly keep a sell signal.

Bollinger Bands are directed down.

MACD is growing in the negative zone.

However, as Stochastic is in the oversold area, and the price has broken the lower line of Bollinger Bands, the upward correction is not excluded.

If the price is set above the level of 106.25, the upward trend can restore in short term, and the instrument can retest the resistance level of 106.64 (Murray [5/8]), which corresponds to the middle line of Bollinger Bands.

The downward trend will be continue after the price is set below the level of 105.89.

In this case, the next targets of sellers will be the level of 105.46 (Murray [2/8]), 105.07 (Murray [1/8]).

Support and resistance

Support levels: 105.89, 105.46, 105.07.

Resistance levels: 106.25, 106.64, 107.03.

Trading recommendations

Short positions can be opened below the level of 105.85 with the target at around 105.46-105.07 and stop loss 106.05.

Long positions can be opened above the level of 106.25 with the target at around 106.64-107.03 and stop loss 106.00.