Well done to any of our readers who managed to short 108.27/108!
USD/JPY:
USD/JPY prices settled Thursday unchanged, failing to sustain gains above 108. For folks who read Thursday’s briefing you may recall the following:
As is evident from the H4 timeframe, price action settled just south of a trend line resistance extended from the high 110.67 (now removed from the chart). Although a reaction could be observed from this angle today, focus remains on the H4 resistance area marked in yellow at 108.27/108 (comprised of June’s opening level at 108.27, a 61.8% Fibonacci resistance at 108.03, round number 108 and an intersecting trend line support-turned resistance [taken from the low 107.81]).
What’s also notable regarding 108.27/108 is the underside of a daily resistance area at 107.98-108.59 provides higher-timeframe confluence, as does weekly resistance at 108.13.
As is evident from the charts this morning, H4 action responded beautifully from 108.27/108, specifically testing the weekly resistance held within at 108.13. Note also the daily timeframe saw the recently closed candle form a shooting star formation at the underside of the resistance area at 107.98-108.59.
Areas of consideration:
Traders short from 108.27/108, with stop-loss orders positioned above 108.27, are in a favourable position this morning, with the option of taking partial profits and reducing risk to breakeven. As for the initial take-profit target structure, we have H4 Quasimodo support in view at 107.05.
USD/JPY prices settled Thursday unchanged, failing to sustain gains above 108. For folks who read Thursday’s briefing you may recall the following:
As is evident from the H4 timeframe, price action settled just south of a trend line resistance extended from the high 110.67 (now removed from the chart). Although a reaction could be observed from this angle today, focus remains on the H4 resistance area marked in yellow at 108.27/108 (comprised of June’s opening level at 108.27, a 61.8% Fibonacci resistance at 108.03, round number 108 and an intersecting trend line support-turned resistance [taken from the low 107.81]).
What’s also notable regarding 108.27/108 is the underside of a daily resistance area at 107.98-108.59 provides higher-timeframe confluence, as does weekly resistance at 108.13.
As is evident from the charts this morning, H4 action responded beautifully from 108.27/108, specifically testing the weekly resistance held within at 108.13. Note also the daily timeframe saw the recently closed candle form a shooting star formation at the underside of the resistance area at 107.98-108.59.
Areas of consideration:
Traders short from 108.27/108, with stop-loss orders positioned above 108.27, are in a favourable position this morning, with the option of taking partial profits and reducing risk to breakeven. As for the initial take-profit target structure, we have H4 Quasimodo support in view at 107.05.
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