USD/JPY: purchases are risky
Tatiana Norkina, FBS analyst
Currency pair managed to stay in the positive area yesterday, although the morning started with a downward correction for 4-hour support of Tenkan and Kijun. As a result, all the indicator line have headed sideways and are currently in a horizontal position, which confirms flat market conditions. Trades are conducted at highs in 116.70.
The oscillators should be noted, which over the past two weeks formed a divergence with price schedule, that suggests a possible reversal of the market with the aim of a deeper correction. In these circumstances, buying a pair will be quite risky, but the main goal - 117.85 - is still not achieved.
Technical levels: Support - 116.20; resistance - 116.70, 117.85.
1. Buy - 116.20; SL - 116.00; TP1 - 116.70; TP2 - 117.85.
2. Sell - 116.10; SL - 116.30; TP1 - 115.20; TP2 - 114.50.