Technical analytics

USDJPY market technical outlook

USDJPY

Daily chart:

Market switched to standby mode expecting today’s news. Testing of support level 108.21 (lower Bollinger band) is very likely.

Local downward phase of the market so far is limited by dynamic support 108.46. As we see the major resides in lower Bollinger bands (108.46-108.86 range). 40 pips would scarcely suffice to keep the price during the news release.

H1-chart:

As we see there is a potential demand zone at support level 108.46, which was formed by bullish pattern O&U. Thus we expect drop to this mark and then sharp recovery towards 109.09.

Expectations:

Decline to 108.46 and then growth to 109.09.

Trading recommendations:

  1. Shorts to 108.46.

  2. Longs from 108.46 to 109.09.