USD/JPY: technical analysis 18.06.2019

USD/JPY: technical analysis 18.06.2019

Current trend

The USD/JPY pair begins today’s trading with bearish bias. Now the price is approaching a support in the region of 108.20 (Murray [2/8]). Assuming the pair’s ability to cross the mark of 108.20, the levels 108.00 (Murray [1/8])-107.81 (Murray [0/8]) can be targeted if holding short positions. The upward trend will be restored after the price is set above the level of 108.44, which is the middle line of Bollinger Bands. In this case the buyers will aim for the 108.59 (Murray [4/8])-108.78 (Murray [5/8]) resistance-zone. Technical indicators mostly reflect the moderate maintenance of the current downward trend. Bollinger Bands are pointed downwards. MACD histogram is ready to enter the negative zone and form a sell signal. Stochastic is in the oversold area and is pointed downwards.

Support and resistance

Support levels: 108.20, 108.00, 107.81.
Resistance levels: 108.39, 108.59, 108.78.

Trading recommendations

Short positions can be opened below the level of 108.20 with the target at around 108.00-107.81 and stop-loss 108.33.
Long positions can be opened above the level of 108.44 with the target at around 108.59-108.78 and stop-loss 108.22.