USD/JPY: technical analysis 14 January 2021, 12:52

 

USD/JPY: technical analysis

14 January 2021, 12:52

Scenario
Timeframe	Intraday
Recommendation	BUY
Entry Point	104.03
Take Profit	104.50
Stop Loss	103.70
Key Levels	102.60, 103.00, 103.30, 103.60, 103.90, 104.20, 104.50, 104.80

Alternative scenario
Recommendation	SELL STOP
Entry Point	103.60
Take Profit	103.00
Stop Loss	103.90
Key Levels	102.60, 103.00, 103.30, 103.60, 103.90, 104.20, 104.50, 104.80

USD/JPY, H4

On the H4 chart, a lateral trend is forming. The instrument corrected to the center line of Bollinger Bands; the indicator cloud is narrowed and it is likely that lateral trend will persist in the short term. MACD histogram is in the positive area, with its volumes minimal; the signal line reversed downwards, and the buy signal is losing its relevance. Stochastic is in the neutral zone, and the lines of the oscillator are directed horizontally.

USD/JPY, D1

On the D1 chart, a lateral trend is forming. The instrument is traded in a narrow corridor formed by the lines of the Bollinger Bands, the indicator cloud is narrowed; preservation of lateral dynamics is likely in the medium term. MACD histogram is in the negative area and its volumes are minimal; the signal line is reversing upwards and the sell signal is losing its relevance. Stochastic is at the border of the neutral zone with the oversold zone; the lines of the oscillator are reversing downwards. The sell signal is forming.

Key levels

Resistance levels: 104.20, 104.50, 104.80.

Support levels: 103.90, 103.60, 103.30, 103.00, 102.60.

Trading tips

Long positions may be opened from the current level with target at 104.50. Stop-loss – 103.70. Implementation time: 1-3 days.

Short positions may be opened from the level of 103.60 with target at 103.00 and stop-loss at 103.90.