Technical analytics

USDJPY market technical outlook

USDJPY

 Daily chart:

It seems that the area of dynamic resistance 108.27 (upper Bollinger band) is unbreakable barrier for bulls so far. Today’s session was opened with gap to the downside. Thus the longer buyers will try to break 108.27 the more likely correction in direction of middle Bollinger band (106.75) will be.

H4-chart:

Bullish inside bar was formed from lower Bollinger band (107.60) being a buy signal. Thus we expect movement towards 108.27 and then downward reversal.

H1-chart:

We note local resistance at 107.94 (middle Bollinger band), which can be considered a key level for today: break higher will drive to testing of 108.27 and rebound will put the quotes down to 107.60.

Expectations:

Main scenario: Growth towards 108.27 and then decline in direction 107.60.

Alternative scenario: Downward bounce from 107.94 to 107.60.

Trading recommendations:

  1. Longs to 108.27

  2. Shorts from 108.27 to 107.60.

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