107 echoing a fragile tone as resistance
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 carving out a descending triangle pattern between 118.66/104.62.
April and May were pretty uneventful, with June also wrapping up indecisively in the shape of a neutral doji candlestick pattern.
Areas outside of the noted triangle can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Partially altered from previous analysis -
Demand at 105.70/106.66, although an area recently favoured, has since lacked follow-through.
Assuming an extension to the upside, the 200-day simple moving average at 108.36 and the 108.16 high (July 1) are likely watched resistances. Below current demand re-opens the risk of a return to support at 105.01.
H4 timeframe:
Following Tuesday’s whipsaw through channel resistance (108.16), a move that brought in the lower ledge of supply at 107.60/107.42, Wednesday welcomed sellers and dropped to a 161.8% Fib ext. level at 106.67. Technical traders will note this Fib base is also located close by demand at 106.39/106.64 and channel support (107.36).
H1 timeframe:
USD/JPY dropped through the 100-period simple moving average heading into European trade Wednesday, with price action also taking on the 107 level and probing lows just ahead of support coming in from 106.64. This also pulled the RSI value into oversold waters.
US trade, as you can see, marginally pared losses and drew things back to levels just under 107. Note the 100-period simple moving average is also seen closing in on the round number.
Structures of Interest:
Daily demand at 105.70/106.66 recently re-joined the fight, albeit echoing a fragile tone.
H4 is seen recovering off the 161.8% Fib ext. level at 106.67, while H1 is currently consolidating under 107. Given the H4 and daily timeframes, 107 and the 100-period simple moving average could be taken today, with intraday traders potentially targeting supply set at 107.30/107.23 and resistance from 107.50.
(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 carving out a descending triangle pattern between 118.66/104.62.
April and May were pretty uneventful, with June also wrapping up indecisively in the shape of a neutral doji candlestick pattern.
Areas outside of the noted triangle can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Partially altered from previous analysis -
Demand at 105.70/106.66, although an area recently favoured, has since lacked follow-through.
Assuming an extension to the upside, the 200-day simple moving average at 108.36 and the 108.16 high (July 1) are likely watched resistances. Below current demand re-opens the risk of a return to support at 105.01.
H4 timeframe:
Following Tuesday’s whipsaw through channel resistance (108.16), a move that brought in the lower ledge of supply at 107.60/107.42, Wednesday welcomed sellers and dropped to a 161.8% Fib ext. level at 106.67. Technical traders will note this Fib base is also located close by demand at 106.39/106.64 and channel support (107.36).
H1 timeframe:
USD/JPY dropped through the 100-period simple moving average heading into European trade Wednesday, with price action also taking on the 107 level and probing lows just ahead of support coming in from 106.64. This also pulled the RSI value into oversold waters.
US trade, as you can see, marginally pared losses and drew things back to levels just under 107. Note the 100-period simple moving average is also seen closing in on the round number.
Structures of Interest:
Daily demand at 105.70/106.66 recently re-joined the fight, albeit echoing a fragile tone.
H4 is seen recovering off the 161.8% Fib ext. level at 106.67, while H1 is currently consolidating under 107. Given the H4 and daily timeframes, 107 and the 100-period simple moving average could be taken today, with intraday traders potentially targeting supply set at 107.30/107.23 and resistance from 107.50.
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