Technical analytics

USDJPY market technical outlook

USDJPY

Daily chart:

We still can expect downward reversal after touch of upper Bollinger band (108.68). In case such scenario is confirmed the first target of sell-offs will be at the area of dynamic support 107.73 (middle Bollinger band).

H4-chart:

Local ADX indicator shows decline during attempt of upward wave development also pointing to weakness of buyers and correspondingly to low probability of break of resistance 108.68. Trading potential is limited by the scope of upper Bollinger bands (108.13-108.68).

H1-chart:

On hourly chart we can notice break of mid-term upward line. It looks like potential of growth is significantly exhausted. We can’t rule out testing of 108.68, that would create premises for active sell-offs from this region.

Expectations:

Growth in direction 108.68 and then steep downward reversal to 108.13 with risk of the quotes’ drop below 106.00 mark.

Trading recommendations:

Shorts from 108.68 to 108.13 and 108.00.

 

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