Bulls are in search of upward entry points | 04 October 2016
04 October 2016, USD/JPY
Daily chart: the pair got to the upper Bollinger envelope and is in the ascendant phase of movement targeting 103.46 (the upper Bollinger band).
Н4: the upper Bollinger envelope has already been broken indicating a bullish potential. But two indicators show that the pair is overbought. So we can not exclude a correction in the direction of the middle band (101.40), where purchases will be re-considered.
Н1: support is better shaped: 101.65 (middle Bollinger band); resistance is 102.30 (upper band). The pair is oversold, but I would strongly warn you against sales in this phase
Expectations: a downward correction is possible (in the direction of 101.65), but we should skip it to search for buy signal for the medium-term goal 103.46
Solutions: in case of a downward correction - buy in the area of 101.65. If bulls continue to exert pressure, we will have to be patient and wait for a downward pullback to minimize stop orders.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
