Technical analytics

USDJPY market technical outlook

USDJPY

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).

H4-chart:

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.   

H1-chart:

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.

Expectations:

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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