USD/JPY: technical analysis 21.11.2019

Current trend

USD/JPY quotes attempted to fall, but reaching 108.271 support moved to upward correction.
The key target of the correction is the level of 108.600, which corresponds to the middle line of Bollinger Bands. The area of 108.600-108.650 can activate a downward rebound. One may speak about upward movement continuation after the price consolidates above the resistance level of 108.789. In this case, the next target of buyers will be the level of 108.984.

Alternative scenario

The rebound from 108.594 resistance will let the price to retest the support area 108.398-108.301. Should prices continue slipping under 108.301 level, the mark of 108.203 can activate an upward rebound.
Meanwhile, a decisive breakout of 108.203 will indicate the downward trend resumption and let the price fall to the 108.008 level.

The technical picture is mixed.
Bollinger Bands are pointed downwards.
MACD histogram is in the negative zone keeping a signal for the opening of sell positions.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 108.398, 108.203, 108.008.
Resistance levels: 108.594, 108.789, 108.984.

Trading recommendations

Short positions can be opened below the level of 108.398 with the target at around 108.203 and stop-loss at 108.464.
Long positions can be opened above the level of 108.789 with the target at around 108.984 and stop-loss at 108.854.

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