USD/JPY analysis for August 04, 2017

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Recently, the USDJPY has been trading downwards. The price tested the level of 109.85. Anyway, according to the 30M time frame, I found inverted head and shoulders formation in creation, which is a sign that selling looks risky. There is also a hidden bullish divergence on the moving average oscillator, which is another sign of potential strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of 110.75 and 110.90.

Resistance levels:

R1: 110.65

R2: 111.25

R3: 111.65

Support levels:

S1: 109.65

S2: 109.25

S3: 108.65

Trading recommendations for today: watch for potential buying opportunities.

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