Interesting price action observed on USD/JPY, traders...
Leaving the underside of 113 unchallenged, the USD/JPY couple explored lower ground Tuesday, consequently engulfing H4 channel support (extended from the low 111.62) and touching gloves with 112. As you can see, the unit retraced a portion of its daily fall from the psychological boundary, reclaiming entry back into within the ascending channel formation amid improved market sentiment.
While weekly price recently brought in the 2018 yearly opening level at 112.65, a potential resistance, daily movement checked in with support at 112.11 yesterday that happens to intersect with a trend line support (taken from the low 109.77). With this being the case, higher-timeframe direction is somewhat rudderless at present.
Areas of consideration:
Having seen H4 action punch its way back into its ascending channel pattern, further buying towards 113 could be on the cards today. This, as we already know, is supported by daily structure, though opposed on the weekly timeframe.
As a way of confirming potential upside, traders are urged to consider waiting and seeing if H4 price retests its channel support and forms a bullish candlestick configuration. Not only does this help traders define buyer intent, it also provides stop/entry parameters as per the selected candlestick’s rules of engagement.
Today’s data points: FOMC members Bostic and Mester speak.
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