USD/JPY: technical analysis 31.12.19
On the 4-hour chart, the instrument keeps a negative dynamic. The price has tested the support level of 108.619 and was slightly corrected upwards, but the downward trend maintains. The key bearish target will be the 108.594 support. There is a high chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 108.398-108.271.
The upward rebound from 105.594 area and pullback above 108.700 will be a sign of upward correction formation and give a prospect of growth to 108.789 resistance. The decisive breakout of 108.789 is needed to indicate the upward trend resumption. In this case, the next targets of buyers will be the level of 108.880-108.984.
Technical indicators maintain a sell signal.
Bollinger Bands are diverging on the background of bearish momentum.
MACD is growing in the negative zone.
Stochastic’s lines are pointed downwards and are reaching the oversold area.
Support and resistance
Support levels: 108.594, 108.398, 108.271.
Resistance levels: 108.789, 108.880, 108.984.
Short positions can be opened below the level of 108.594 with the target at around 108.271 and stop-loss at 108.701.
Long positions can be opened above the level of 108.789 with the target at around 108.984 and stop-loss at 108.724.