USD/JPY: Murrey analysis 11 January 2019, 13:24

USD/JPY: Murrey analysis

11 January 2019, 13:24

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	107.75
Take Profit	107.03, 106.25
Stop Loss	108.30
Key Levels	106.25, 107.03, 107.81, 109.37, 110.15, 110.93

Alternative scenario
Recommendation	BUY STOP
Entry Point	109.40
Take Profit	110.15, 110.93
Stop Loss	108.90
Key Levels	106.25, 107.03, 107.81, 109.37, 110.15, 110.93

On the daily chart, the pair continues to trade within the downward trend, although the decline slowed down around ​​107.81 ([5/8]). The breakdown of this level will let the price fall to the level of 107.03 ([1/8], H4) and 106.25 ([4/8]). The likelihood of continued decline is confirmed by technical indicators. Bollinger bands reversed downwards, Stochastic is reversing downwards near the overbought zone, MACD histogram increases in the negative zone.
The resumption of growth to the levels of 110.15 (the middle line of Bollinger bands, [5/8] H4) and 110.93 ([5/8]) will be possible if the price is fixed above the level of 109.37 ([6/8]).
Support and resistance
Resistance levels: 109.37, 110.15, 110.93.
Support levels: 107.81, 107.03, 106.25.

Trading tips
Short positions can be opened after the price fixes below the level of 107.81 with the targets at 107.03 and 106.25 and stop loss around ​​108.30.
Long positions can be opened above the level of 109.37 with the targets at 110.15, 110.93 and stop loss 108.90.
Implementation period: 4–5 days.