Wait for shifts in different directions | 02 December 2016

02 December 2016, USD/JPY

Daily chart: price will touch upper Bollinger band (116.71). The pair is overbought and there are signs of oscillator divergence. From a technical point of view, that means market is ready for reversal to 109.56 (middle Bollinger band).

Wait for shifts in different directions

Н4: There is bear oscillator divergence in this frame too. However, do not forget that lately strong movement reversals occur through new highs. Moreover, today NFP report is to be published which usually blows the quotes. That's why consider seeking for new buy signals on one of the support levels (113.13 and 111.43).

Wait for shifts in different directions

Н1: 113.83 support (lower Bollinger band) backs up bears so far. However, do not underestimate 113.13 support level attraction.

Wait for shifts in different directions

Expectations: wait for a drop to 113.13 after what upward shift to touch 116.71. Of course, any reverse scenario is possible (e.g. a drop to 111.43)

Solutions: consider buying in the range of 113.13 and 116.71, and after that selling from 116.7.

Aleksey Panasenko
FreshForex Analyst
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