USD/JPY: Murrey analysis 07 September 2017, 13:37

USD/JPY: Murrey analysis

07 September 2017, 13:37

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	109.40
Take Profit	110.15, 110.98, 111.71
Stop Loss	109.00
Key Levels	106.25, 107.81, 108.59, 109.37, 110.15, 110.93, 111.71

Alternative scenario
Recommendation	SELL STOP
Entry Point	108.50
Take Profit	107.81, 106.25
Stop Loss	109.00
Key Levels	106.25, 107.81, 108.59, 109.37, 110.15, 110.93, 111.71

On the D1 chart the price is around the level of 109.37 [0/8] (main support) — 108.59 [-1/8] (extreme support). The zone seems quite strong as the pair has been testing it in vain since April. Currently the price is approaching the cyclical line near which it may reverse upwards. In this case the growth of the price may continue through a number of levels (110.15 [1/8] and 110.93 [2/8]) to the lower border of horizontal channel 111.71 [3/8] (bottom of the channel). The continuation of the fall is possible if the price consolidates below 108.59 [-1/8]. In this case the pair may decrease to 107.81 [-2/8] (final resistance) and 106.25 [2/8] (for W1 chart). Technical indicators show the possibility of the fall but in limited scope. Stochastic is directed downwards but has approached the oversold area. MACD histogram shows indicators of bearish divergence, the occurrence of which will open the way to purchases.
Support and resistance
Support levels: 108.59 [-1/8] (extreme support), 107.81 [-2/8] (final support), 106.25 [2/8] (rotation and reversal in W1).
Resistance levels: 109.37 [0/8] (main support), 110.15 [1/8] (stop, reversal), 110.93 [2/8] (rotation, reversal), 111.71 [3/8] (bottom of the channel).

Trading tips
In the current situation buy positions may be opened at the level above109.37 or in case of a turn around 108.59 with targets at 110.15, 110.98, 111.71 and stop-losses at 109.00 and 108.30. Short positions can be opened if the price consolidates below 108.59 with targets at 107.81, 106.25 and stop-loss at 109.00.