USD/JPY: Murrey analysis 03 December 2018, 13:11

USD/JPY: Murrey analysis

03 December 2018, 13:11

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	113.20
Take Profit	112.50
Stop Loss	113.60
Key Levels	111.72, 112.50, 113.28, 114.06, 114.50, 114.84

Alternative scenario
Recommendation	BUY STOP
Entry Point	114.10
Take Profit	114.50, 114.84
Stop Loss	113.70
Key Levels	111.72, 112.50, 113.28, 114.06, 114.50, 114.84

On D1 chart, the price dropped to around 113.28 ([5/8], the midline of Bollinger Bands). After its breakdown, the decline can continue to 112.50 (the central level of Murrey [4/8], the bottom line of Bollinger Bands, the lower border of the ascending channel). The possibility of a decrease is confirmed by a downward reverse of the Stochastic and MACD histogram declining in the positive zone. The level of 114.06 ([6/8]) still seems a key one for the "bulls". Its breakdown will give the prospect of growth to the levels of 114.50 (October highs) and 114.84 ([7/8]), but now it seems less likely.
Support and resistance
Support levels: 113.28, 112.50, 111.72.
Resistance levels: 114.06, 114.50, 114.84.

Trading tips
Short positions may be opened if the price consolidates below 113.28 with the target at 112.50 and stop loss at 113.60.
Long positions may be opened above the level of 114.06 with targets at 114.50, 114.84 and stop loss at 113.70.
Implementation period: 4-5 days.