USD/JPY is moderately falling due to low trading activity and relative calm information field.
On the 4-hour chart, the price has tested the support level of 106.25 (Murray [0/8]) and was slightly corrected upwards, but the downward trend maintains.
The breakout and consolidation of the price below the level of 106.25 (Murray [0/8]) will let USD/JPY reach the level of 105.85 (Murray [-1/8]).
If the price is set above the level of 106.64 (Murray [1/8]), the upward trend can restore, and the instrument can retest the resistance level of 107.03 (Murray [2/8]).
Technical indicators reflect the maintenance of the downward potential. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Bollinger Bands are directed down. Stochastic’s lines are pointed downwards and are reaching the oversold area.
Support and resistance
Support levels: 106.25, 105.59, 105.46.
Resistance levels: 106.64, 107.03, 107.42.
Short positions can be opened below the level of 106.25 with the targets at around 105.85-105.46 and stop loss 106.55.
Long positions can be opened above the level of 106.64 with the targets at around 107.03-107.42 and stop loss 106.45.