A touch in 119.05 and decline? | 16 December 2016

16 December 2016, USD/JPY

Daily chart: upward correction is close. Upper envelope is broken, indicators are in their extremes and oscillator shows bearish divergence.

A touch in 119.05 and decline?

Н4: level of possible high is 119.02 (upper Bollinger band and round psychological level). From here the pair might start declining towards support levels 118.12 and 116.31.

A touch in 119.05 and decline?

Н1: flat horizontal corridor within Bollinger envelopes (117.77-118.55) also indicates that bulls are loosing their grounds.

A touch in 119.05 and decline?

Expectations:

Core scenario - flat 117.77-118.55

Alternative scenario - the last upward shift to 119.05 and later rapid downward correction.

Solutions:

1. Buy around 119.00

2. Cautious selling from around 119.05.

Aleksey Panasenko
FreshForex Analyst
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