A bullish trend will be next, if the support can hold the price
USD tried to rally on Wednesday and recover from the recent decline. The USD strengthening triggered JPY selling. The price dumped significantly and now the price is on a strong support. In case the support level can stop the descending wave, buyers can be expecting to see a strong bullish wave. On the other hand breaking this support level can be a good opportunity for bears to enter.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The support rests at 107.470 with resistance at 108.190 which the weekly pivot point at 109.060 is located above the lines. The EMA of 10 is moving with bearish bias in the descendant channel and it is below the EMA of 200 and the EMA of 100. The Stochastic is showing downward momentum, the RSI is moving in oversold area. The MACD is moving in neutral territory and the ADX is showing sell signal.
107.500 may play an important role as the support area. As long as support line remains intact buyers can target 108.500; otherwise USDJPY will continue its bearish trend towards 107.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.