USD/JPY bulls have once again failed to move beyond the 106.44 resistance area and the pair is currently trading 0.33% lower to 106.03. A breach below 106.00 is likely to further extend the downwards move and the bears would find support only near 105.77 and 105.52 areas. The 106.40 is major a resistance for bulls while other resistances are at 106.64 and 106.86.

Currently, it appears that the downwards move is extending towards the SMA-14 support line at 105.41. The SMA-50 support area is at 104.30. The pair is above the mid-Bollinger band which is at 105.33. The RSI is at 61 and has a downwards curve. Based on the price pattern the pair would be good to sell if it breaks below 106.00 on the 4-hourly scale. A reasonable target would be 105.45 with a stop-loss at or above 106.30. On the flip side, the 105.40 may act as a strong support line and a buying entry can be planned near that level. The target would be 105.90 with a stop-loss at 105.15.

On the upside, only a sustained price action above 106.00 will be supportive of the bulls and help them challenge the resistance at 106.44.  On the downside, a weekly closing below 105.40 would be a setback to the bulls and the downside would likely be extended during the next week.

close

Get notified when there is a new post. Read new post to earn 10 points!

1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 4.33 out of 5)
Loading...

Rate an article for points!

By LCMS Traders FX Analysis Team

You will get access to our "Getting Started Tutorials" where you will learn the trading methodology devised by the LCMS Traders Team who uses the same exact methodology to trade a Multi-Million Dollar account on a daily basis.

Leave a Reply

Your email address will not be published. Required fields are marked *