Technical analytics

USDJPY market technical outlook


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).


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.


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.


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.