Technical analytics

USDJPY market technical outlook

USDJPY

Daily chart:

Local contraction of trading range is observed suggesting consolidation of the market before strong distribution. Given yesterday's pinbar at the tip of upswing, bears possess the positioning advantage. Thus we can expect a forming of new downswing from resistance zone 104.58-104.74 in direction 104.03-104.14. 

H1-chart:

Local expanding structure so far doesn't have a downswing that increases a probability of downward reversal from the resistance level 104.57, which is being tested now. But also we can’t rule out a movement to 104.58-104.74, which was marked on the daily chart. 

Conclusions:

Main scenario: Growth to 104.58-104.74, then decline to 104.24 and 104.03.

Alternative scenario: Downward reversal from 104.57 to 104.24 and 104.03.

Trading recommendations:

Shorts from 104.57 and 104.74 to 104.24 and 104.03.

 

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