Last week, the pair USD/JPY fell to the strong support level of 111.30 (ЕМА144 on weekly chart). However, last Friday, the pair partly regained losses amid the rise of the global stock indices and since the opening session today it has grown by 70 points versus the level of last Friday.
On 4-hour chart the indicators OsMA and Stochastic give buy signals, on the daily chart the indicators also show long positions.
If we take the 18 of November as the date of the beginning of the last serge of decline at the level of 123.60, zero Fibonacci retracement will be at the level of 112.40. Indicators show long positions. Upward correction can continue to 115.50 (Fibonacci 23.6%). In case of favourable fundamental data the rise can reach the level of 116.65 (Fibonacci 38.2%). Now, the indicators support sellers.
If the indicators reverse towards the short positions earlier than the price reaches the level of 115.05, then breakdown of the support level of 111.30 can trigger more rapid decline to support level of 108.00 (ЕМА200 on the weekly chart). The indicators OsMA and Stochastic on the weekly and monthly charts as fundamental data are in favour of sellers.
Support levels: 112.40, 112.00 and 111.30.
Resistance levels: 115.05, 116.65, 118.00 and 119.30.
Buy Stop 114.10.
Stop Loss 113.80.
Take-Profit: 114.30, 115.05 and 116.65.
Sell Stop 113.30.
Stop Loss 113.70.
Take-Profit: 113.00, 112.40, 112.00, 111.30 and 111.00.