Will 100.00 support zone hold bears?
22 September 2016, USD/JPY
Daily chart: the pair is coming to support 100.11 (lower Bollinger band and the round psychological level) doing that in the impulse mode. ADX is growing and has not reached the trendline area yet. However, if bearish pressure does not weaken, we will see a large new medium-term decline (See the red arrow)
Н4: a few bars outside the envelopes, but very active (even aggressive!) ADX, that could mean a willingness to a stronger decline.
Н1: also a bearish trend ADX, but against the background of a sufficiently large oversoldness. The lower Bollinger band is below support 100.11, which is also an argument in favor of sellers.
The main scenario - fall under 100.11 and consolidation in the 99th figure
The alternative scenario - touch of 100.00-100.11 and rebound towards 101.29
Trading solutions: track how the price will respond to the level of 100.11 and act on the basis of the rebound/breakdown scenario (see scenarios for the day)
Aleksey PanasenkoAnalyst of «FreshForex» company
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