Technical analytics

USDJPY market technical outlook

USDJPY

Daily chart:

Mid-term dynamic support 109.365 (middle Bollinger band) is being tested. Market traditionally will have only two ways from this level: either to the upside in direction 110.666 (upper Bollinger band, see the black arrow) or to lower bands (and correspondingly decline in direction 108.068, red arrow).

H4-chart:

It can be well seen that 109.365 level is a key and defining zone: bullish inside bar was formed from it, which though got a false upward break later. I.e. we can anticipate a struggle for domination at this level.

H1-chart:

On hourly chart market is trending down that speaks for scenario with testing 109.365 (lower Bollinger band). At the same time we need to note a very low potential of ADX suggesting low probability of break of this level.

Expectations:

So, we expect decline in direction 109.365 and following upward bounce.

Trading recommendations:

  1. Shorts to 109.365.

  2. Longs from 109.365 to 109.648.