On the , the pair is trading in the lower . The price remains on the level with the EMA65, EMA130 and SMA200 that turned horizontally. The is falling having broken down its longer MA. The Composite is testing its strong support.
USD/JPY , H4
On the 4-hour chart, the pair is correcting up from the lower line of . The price remains above the SMA200, but below the EMA14, EMA65 and EMA130 that turned down. The keeps forming a with the price just on the border of the oversold zone. The Composite is diverging with the price as well.
Support levels: 111.60 (February lows), 110.50 (local lows), 109.70 (local lows).
Resistance levels: 112.85 (local highs), 113.60 (local highs), 114.35 (May highs).
The price is testing its strong near 111.60. Its breakdown would lead to a fall continuation, but there is also a chance of an upward rebound.
Short positions can be opened form the level of 111.60 with targets at 110.50, 109.70 and stop-loss at 112.20. Validity – 3-5 days.
Long positions can be opened from the level of 112.85 with targets at 113.60, 114.35 and stop-loss at 112.25. Validity – 3-5 days.