USD/JPY: technical analysis 20.12.19
USD/JPY quotes attempted to grow, but reaching 109.398 mark moved to a decline. If the sellers manage to decline the rate below the level of 109.270, the price can return to 109.180 support. This level seems an important mark for the sellers. There is a high chance of an upward rebound, while its breakdown would allow the fall to continue to the 108.984 support.
The pullback and pair’s sustained trading above the 109.400 resistance will give a prospect of growth to the 109.477 resistance (which is the middle line of Bollinger Bands). One may speak about upward movement continuation after the price consolidates above the resistance level of 109.570. In this case, the next targets of buyers will be the level of 109.766.
The technical picture is mixed.
Bollinger Bands are pointed downwards.
MACD volumes are decreasing in the positive zone.
Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 109.270, 109.180, 108.984.
Resistance levels: 109.375, 109.570, 109.766.
Short positions can be opened below the level of 109.270 with the target at around 109.180-108.984 and stop-loss at 109.365.
Long positions can be opened above the level of 109.570 with the target at around 109.765 and stop-loss at 109.505.