Technical analytics

USDJPY market technical outlook

USDJPY

Daily chart:

Area of psychologically important support 110.00 is quite attractive for buyers, who have at their disposal both a mid-term uptrend and an excellent technical downward correction. Thus we can expect an upward bounce off 110.00 and a start of new upward wave. 

H4-chart:

Active decline of the quotes, as we see, may reach 109.70, where we have lower Bollinger band. Thus a potential zone of upward reversal has 30-pips size (109.70-110.00). 

H1-chart:

Low trending potential of ADX indicator makes scenario with upward bounce off support 110.00 (lower Bollinger band) the most likely. We shouldn’t expect the quotes above resistance level 109.57 (upper band) today.

Expectations:

Main scenario: Decline to 110.00 and then growth to 110.57.

Alternative scenario: Decline to 109.70 and then reversal in direction 110.57.

Trading recommendations:

Longs from 110.00 and 109.70 to 110.57.

 

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