Technical analytics

USDJPY market technical outlook


Daily chart:

The major slumped after touch of upper Bollinger band leaving almost no doubts, that decline now will be continued in direction of support 108.28 (lower Bollinger band).


Local ADX resides in a very weak zone, therefore break of dynamic support 108.89 (lower Bollinger band) is unlikely shortly. It looks like market will accumulate further potential in this zone keeping mid-term prospects of further decline.   


Right now middle Bollinger band (109.15) is being tested. Decline might be continued from this level. Though we can’t rule out a very short corrective momentum towards upper band (109.42). Thus we consider shorts from 109.15 and 109.42.


Main scenario: Flat in the 108.89-109.15 range.

Alternative scenario: Upward correction towards 109.42 and then downward reversal in direction 108.89.

Trading recommendations:

Shorts from 109.15 and 109.42.


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