USD/JPY: technical analysis 26.12.19
Today's trade started with an upward gap. The price is approaching a strong resistance in the region of 109.570. There is a chance of a downward rebound, while its breakout would allow the growth to continue to the area of 109.635-109.766.
The rebound from 109.570 and pullback below 109.520 will be a sign of downward correction formation. In this case, the pair will have a potential for a further decline to 109.375 mark. This level is coincided with the middle line of Bollinger Bands and can activate an upward rebound. Meanwhile, the breakdown of the 109.375 and pair’s sustained trading below 109.329 will give a prospect of decline to 109.180-108.984 support zone.
Technical indicators maintain a buy signal.
Bollinger Bands are diverging on the background of bullish momentum.
MACD is growing in a positive zone.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 109.520, 109.375, 109.180.
Resistance levels: 109.570, 109.766, 109.900.
Short positions can be opened below the level of 109.520 with the target at around 109.375-109.180 and stop-loss at 109.633.
Long positions can be opened above the level of 109.570 with the target at around 109.766-109.900 and stop-loss at 109.460.