Forex Technical Analysis: Trend potential – Couple of Scenarios for Today

USDJPY – Down

Daily chart: confident break of lower Bollinger envelope indicates that bears ensured the pair’s reversal to the downside. ADX, however, hasn’t reached trend state yet, that’s why there is still possibility of some correction towards middle Bollinger band (116.689)

Couple of Scenarios for Today

Н4: here we can see much more localized resistance level of 115.467 (middle Bollinger band). Bulls are not likely to go higher that this level.

Couple of Scenarios for Today

Н1: here we are observing another localized resistance level of 114.955 (upper Bollinger band and round level of 115.00). Support level is on lower Bollinger band (113.937)

Couple of Scenarios for Today

Expectations:

Core scenario – touch of 114.955 and later decline towards 113.937

Alternative scenario – more significant rollback to the upside (to 115.467)

Solutions: consider selling after one of the levels has been touched (113.937 or 115.467) depending on the scenario.

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