Technical analytics

USDJPY market technical outlook

USDJPY

Daily chart:

Strong resistance level 109.05 (upper Bollinger band) is reached, where we can face profit booking and new sell-offs.

However we need to take into consideration a probability of upward break as ADX indicator resides in a trend zone.

H4-chart:

Locally it can be well seen, that upward scenario remains prevailing: upper Bollinger band was broken being a pattern of main tendency continuation. Thus we can consider longs from middle Bollinger band (108.41).

H1-chart:

On hourly chart we note correction of ADX state, that may be a sign of flat inside Bollinger bands (108.55-108.96 range) as a part of preparation of mid-term upward movement.

Expectations:

Main scenario: Flat in the 108.55-108.96 range.

Alternative scenario: Touch of 108.41 and then growth above 109.05.

Trading recommendations:

Longs from 108.41-108.55. 

 

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