Technical analysis 26.08.2019

USDJPY

The pair dropped sharply in the Asian trading session amid the escalation of the US-China trade war. It can partially recover after the strong drop, but as long as only negative factors remain, it’s likely continue falling.

The price is below the middle Bollinger band, above the SMA 5, but below the SMA 14. RSI has left the oversold area and growing steadily. Stoch also turned up.

Trade recommendations:

There is a possibility of local recovery of the pair to 106.65 while it is above 105.15. It is possible to sell the pair at its growth from 106.65 amid the continuing negativity in the markets, or at its drop below 105.15 with a local target of 104.00.