USD/JPY analysis for August 13, 2019 – Support on the test, potential for rally

USD/JPY has been trading downwards in past 10 hours but I found good rejection of the important support at the price of 105.10, which is for me sign that sellers lost downside momentum and that rally is on the way.

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Yellow rectangle: – Resistance 1 (105.51)

Yellow rectangle – Resistance 2 (105.70)

Blue horizontal line – Support (105.10)

USD/JPY got strong rejection of the important support in the background at the price of 105.10, which is sign for further rally. Stochastic oscillator is in oversold condition, which is another good confirmation for my long bias. Additionally, there is the fresh flip up on Stochastic. MACD oscillator is showing the decreasing in the downside momentum, which adds more confirmation for our bullish view.

Trading recommendation:

According to current market conditions, my advice is to watch for buying opportunities as long as the JPY is trading above the 105.05.

The material has been provided by InstaForex Company – www.instaforex.com