USD/JPY: Murrey levels analysis

On the chart the price has rebounded from the key level of 114.06 [6/8] (Pivot, Reverse), which it has been trying to cross since the beginning of the year.

At the moment the price has entered the sideways channel 113.28–111.71, the levels of [5/8], [3/8], which let the pair trade in this area for a long time. On the other hand, the 4–5 days consolidation of the price around 113.28 [5/8] and circular line and the following new test of the level of 114.06 [6/8] is not excluded. In case of breakout the price can grow to the area of 115.62, the level of [8/8] Ultimate Resistance). However the middle slighting lines are still pointed upwards, but EMA (89) has crossed the other ones and is going down, which reflects the possibility of the middle term fall. Sales volumes are lowering, which can reflect the possibility of slight growth.

Trading tips

The situation is controversial, but short positions seem more relevant and can be opened after the consolidation of the price below the level of 113.28 with the targets at 112.50, 111.71 and stop loss at 113.75.

Long positions will become relevant above the level of 114.06 with the targets at 114.84 and 115.62. Stop loss is around 113.60.