Our thoughts on the YEN
Going into yesterday’s European session price was seen driving lower, momentarily surpassing the H4 support area at 112.15-112.42 and tagging in bids just ahead of the 112.00 figure. This, as can be seen from the H4 chart, shows the bulls followed through with an offensive attack back up to retest resistance coming in at 112.61, which is also noted as resistance on the daily scale.
With stops likely removed from the current H4 support area, and some of the buying power consumed from 112.00, we’re looking for this unit to push lower today and possibly close beyond the 112.00 mark. Below this number we see little active H4 demand other than around the area marked with a pink circle at 111.53-111.71. Beyond here, however, there appears space for price to hit the 111.00 region, as demand seems to be consumed (see the H4 demand consumption tails marked with black arrows at 111.37/111.21).
In addition to the above, both the weekly and daily charts show clear space to move lower to at least daily support at 110.96 – effectively the 111.00 figure! On account of this, our plan of attack today will consist of watching for price to close below 112.00 and retest the underside of this line as resistance. Should we then manage to pin down a lower timeframe sell from here, we’d look to jump in short, and move our stop to breakeven once/if price reached the 111.60 mark. A close beyond this number would allow us to hold the position down to 111.00 – our final take-profit zone.
With stops likely removed from the current H4 support area, and some of the buying power consumed from 112.00, we’re looking for this unit to push lower today and possibly close beyond the 112.00 mark. Below this number we see little active H4 demand other than around the area marked with a pink circle at 111.53-111.71. Beyond here, however, there appears space for price to hit the 111.00 region, as demand seems to be consumed (see the H4 demand consumption tails marked with black arrows at 111.37/111.21).
In addition to the above, both the weekly and daily charts show clear space to move lower to at least daily support at 110.96 – effectively the 111.00 figure! On account of this, our plan of attack today will consist of watching for price to close below 112.00 and retest the underside of this line as resistance. Should we then manage to pin down a lower timeframe sell from here, we’d look to jump in short, and move our stop to breakeven once/if price reached the 111.60 mark. A close beyond this number would allow us to hold the position down to 111.00 – our final take-profit zone.
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