USD/JPY: decline from key resistance
At the end of August, the USD/JPY pair tested the local minimum at 104.70, reversed and began to grow. Subsequently, the instrument moved to wide sideways consolidation, and then changed the direction of the trend. Over the past two trading weeks, the price has risen by more than 200 points and reached an important resistance level of 107.70.
The main catalyst for the “bullish” dynamics was poor Japan statistics and the rapid growth in demand for the American currency.
Support and resistance
In the future, the upward momentum will continue until the key resistance levels of 108.70, 109.10. It is worth noting that the pair remains within a wide long-term channel: it reversed at the lower end of the range and rushed to the upper one, which indicates a high probability of resuming of the downward movement from the key resistance levels of 108.70, 109.10.
On the weekly chart, the technical indicators still give a strong sell signal: high volumes of short MACD positions remain, and Bollinger bands are directed downwards.
Resistance levels: 107.70, 108.15, 108.70, 109.10, 109.30.
Support levels: 107.40, 107.05, 106.80, 106.00, 105.50, 104.70.
Pending short positions can be opened from the levels of 108.70, 109.10 with the targets at 107.05, 106.80 and stop loss 109.80.
104.70, 105.50, 106.00, 106.80, 107.05, 107.40, 107.70, 108.15, 108.70, 109.10, 109.30