USD/JPY: technical analysis 17.01.20
On the 4-hour chart, the instrument keeps a moderate positive dynamic. At the moment the price has met the resistance at the level of 110.284 and was slightly corrected downwards, but the upward trend maintains. The breakout of 110.284 and the pair’s sustained trading above this level will give a prospect of growth to 110.547 resistance.
The pullback below 110.156 will be a sign of downward correction formation and let the price decline to the 110.970 support-line (the middle line of Bollinger bands). There is a chance of an upward rebound, while its breakdown would allow the fall to continue to 110.766. A significant decrease is possible after the breakdown of this level. In this case, the next key target of sellers will be the level of 109.375.
Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.
Bollinger Bands are diverging on the background of bullish momentum.
MACD is growing in a positive zone.
Stochastic is preparing to exit the overbought zone and is directed downwards, signaling the development of a downward correction.
Support and resistance
Support levels: 110.156, 109.766, 109.375.
Resistance levels: 110.284, 110.547, 110.938.
Short positions can be opened below the level of 110.156 with the target at around 109.766 and stop-loss at 110.256.
Long positions can be opened above the level of 110.284 with the target at around 110.547 and stop-loss at 110.180.