A retest at the H1 supply from 106.76/106.63 may spark interest
USD/JPY:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern between 118.66/104.62. The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation.
April was pretty uneventful, ranging between 109.38/106.35. May, on the other hand, trades lower by nearly 1.00%.
Areas outside of the noted pattern can be seen at supply from 126.10/122.66 and a demand coming in at 96.41/100.81.
Daily timeframe:
Although scratching in a modest recovery Thursday, snapping a four-day losing streak, sellers clearly still have the upper hand in this market. Price action, as you can see, remains entrenched within the parapets of demand from 105.70/106.66; abandoning its position may eventually see demand at 100.68/101.85 make a show.
H4 timeframe:
Partially altered from previous analysis -
A bearish pennant pattern between 106.92/108.07 took hold after having its lower boundary taken in recent weeks. Traditionally, take-profit targets out of bearish pennant patterns are formed by measuring the preceding move (109.38-106.92) and adding the value to the breakout point (black arrows – 104.89).
Thursday observed price reject a local trendline support-turned resistance (106.35), shifting focus towards demand at 105.75/105.17, an area sited just above the bearish pennant’s take-profit target.
H1 timeframe:
Supply at 106.76/106.63 knocked some of the wind out of the US dollar’s rally on Thursday, aided by the 106.50 level and the 100-period simple moving average (SMA). With respect to support, 106 calls for attention, with a break perhaps exposing the upper layer of H4 demand at 105.75.
Structures of Interest:
The response out of daily demand at 105.70/106.66 echoes a fragile tone, as well as monthly price also exhibiting scope to navigate lower levels, strengthening the possibility of the H4 bearish pennant pattern completing its target of 104.89.
A retest at the H1 supply from 106.76/106.63, therefore, may spark seller interest, as might a break through 106. Though do recall the upper layer of H4 demand at 105.75 lurks nearby.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern between 118.66/104.62. The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation.
April was pretty uneventful, ranging between 109.38/106.35. May, on the other hand, trades lower by nearly 1.00%.
Areas outside of the noted pattern can be seen at supply from 126.10/122.66 and a demand coming in at 96.41/100.81.
Daily timeframe:
Although scratching in a modest recovery Thursday, snapping a four-day losing streak, sellers clearly still have the upper hand in this market. Price action, as you can see, remains entrenched within the parapets of demand from 105.70/106.66; abandoning its position may eventually see demand at 100.68/101.85 make a show.
H4 timeframe:
Partially altered from previous analysis -
A bearish pennant pattern between 106.92/108.07 took hold after having its lower boundary taken in recent weeks. Traditionally, take-profit targets out of bearish pennant patterns are formed by measuring the preceding move (109.38-106.92) and adding the value to the breakout point (black arrows – 104.89).
Thursday observed price reject a local trendline support-turned resistance (106.35), shifting focus towards demand at 105.75/105.17, an area sited just above the bearish pennant’s take-profit target.
H1 timeframe:
Supply at 106.76/106.63 knocked some of the wind out of the US dollar’s rally on Thursday, aided by the 106.50 level and the 100-period simple moving average (SMA). With respect to support, 106 calls for attention, with a break perhaps exposing the upper layer of H4 demand at 105.75.
Structures of Interest:
The response out of daily demand at 105.70/106.66 echoes a fragile tone, as well as monthly price also exhibiting scope to navigate lower levels, strengthening the possibility of the H4 bearish pennant pattern completing its target of 104.89.
A retest at the H1 supply from 106.76/106.63, therefore, may spark seller interest, as might a break through 106. Though do recall the upper layer of H4 demand at 105.75 lurks nearby.
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