Technical analytics

USDJPY market technical outlook

USDJPY

Daily chart:

Growth of the quotes continues on the back of active trending ADX suggesting huge probability of attack of the round psychological level 110.00. This level can quite contain an impressive volume of sell limit orders (including take profits of buyers), therefore it’s going to be tough to move above this level.

H4-chart:

Locally the major consolidates inside upper Bollinger bands (109.50-109.77). ADX declines therefore there is a probability of one more testing of support 109.50, from where we can open longs towards 110.00.

H1-chart:

On hourly chart drop of ADX indicator readings is observed as well, therefore we can’t rule out a flat session in the 109.50-109.77 range (upper Bollinger bands). 

Expectations:

Main scenario: Flat in the 109.50-109.77 range.

Alternative scenario: Growth towards 110.00.

Trading recommendations:

Longs from 109.50 to 109.77 and 110.00.

 

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