USD/JPY: technical analysis 23.03.2018

USDJPYH423032018

Current trend

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

The lack of long-term corrections reflects the strength of the current trend.

Currently, the price is testing a strong support level of 106.68 (Murray [0/8]).

Breakout and consolidation of the price below this level will open the path to the area of 104.29 (Murray [-1/8]) – 103.90 (Murray [-2/8]).

There is a high chance of a downward reverse from the level of 103.90.

If USD/JPY cannot consolidate below the level of 104.68, it will begin to grow to the area of 105.46 (Murray [2/8]).

This scenario will be relevant in case of consolidation the price above the level of 105.07 (Murray [1/8]).

Support and resistance

Support levels: 104.68, 104.29, 103.90.

Resistance levels: 105.07, 105.46, 105.85.

Trading recommendations

Short positions can be opened below the level of 104.68 with the target at around 104.29-103.90 and stop loss 104.85.

Long positions can be opened above the level of 105.07 with the target at around 105.46-105.85 and stop loss 104.82.