USD/JPY: Murray analysis 23 May 2018, 13:20

USD/JPY: Murray analysis

23 May 2018, 13:20

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	109.30
Take Profit	108.60, 107.81
Stop Loss	109.80
Key Levels	107.81, 108.60, 109.37, 110.93, 112.50

Alternative scenario
Recommendation	BUY STOP
Entry Point	110.00
Take Profit	110.93
Stop Loss	109.50
Key Levels	107.81, 108.60, 109.37, 110.93, 112.50

On the daily chart, the price was corrected to the middle line of Bollinger Bands around 109.70 and can fall to the levels of 109.37 ([6/8]), 108.60 ([–2/8], H4) and 107.81 ([5/8]). Otherwise, the instrument can return to the area of May’s highs at the level of 110.93 ([7/8]). Technical indicators reflect the fall, Stochastic has left the overbought zone, and MACD is decreasing in the positive zone. The level of 109.37 is quite strong; the upward reversal is not excluded there.
Support and resistance
Resistance levels: 110.93 ([7/8]), 112.50 ([8/8]).
Support levels: 109.37 ([6/8]), 108.60 ([–2/8], H4), 107.81 ([5/8]).

Trading tips
Short positions can be opened below the level of 109.37 with the targets at 108.60 and 107.81 and stop loss around 109.80.
Long positions can be opened after the reversal of the price around 109.37 and consolidation above the level of 109.70 with the target at 110.93 and stop loss around the level of 109.50.
Implementation period: 5–7 days.