USD/JPY: Technical outlook and review.
Weekly Timeframe: The weekly timeframe shows price is currently pushing deeper into the weekly supply area seen at 110.652-108.123. Assuming selling interest comes into the market here, we can likely expect price to test the 105.432 area (Resistance swap level) sometime in the near the future, since the path south appears to be clear of any obstacles (demand) on this timeframe. Nevertheless, at the same time we have to be prepared for price to break above this weekly supply area, which as a consequence will likely attract further buying up to the next weekly supply area coming in at 114.650-112.620.
Daily Timeframe: Further buying is clearly evident on the daily timeframe, as price appears to be edging closer pip-by-pip towards the 110.390 level (Quasimodo resistance), which if hit, would consequently see price trading very deep within the weekly supply area at 110.652-108.123. On the other hand, if we see a daily close below the 108.421 level, this will likely attract further selling down to a daily decision-point area at 106.799-107.108, and ultimately confirm selling strength from the current aforementioned weekly supply area.
4hr Timeframe: The 4hr timeframe shows that price continues to make higher highs and higher lows within the weekly supply area mentioned above – not a great sign for anyone who has sold at this area!
It is very likely to 110 level will see some action very soon, which if you remember is only 39 pips away from the daily Quasimodo resistance level (110.390) mentioned above. However, before higher prices are seen, traders would do well to prepare for a potential retracement (to collect buy orders) down to either the 4hr decision-point level at 109.300 (active buy orders likely set just above at 109.363), or failing that , a push down to the 109 level (active buy orders likely set just above at 109.056).
Buy/sell levels:
• Buy orders: 109.056 (Predicative stop-loss orders seen at: 108.799) 109.363 (Predicative stop-loss orders seen at: 109.069).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: Further buying is clearly evident on the daily timeframe, as price appears to be edging closer pip-by-pip towards the 110.390 level (Quasimodo resistance), which if hit, would consequently see price trading very deep within the weekly supply area at 110.652-108.123. On the other hand, if we see a daily close below the 108.421 level, this will likely attract further selling down to a daily decision-point area at 106.799-107.108, and ultimately confirm selling strength from the current aforementioned weekly supply area.
4hr Timeframe: The 4hr timeframe shows that price continues to make higher highs and higher lows within the weekly supply area mentioned above – not a great sign for anyone who has sold at this area!
It is very likely to 110 level will see some action very soon, which if you remember is only 39 pips away from the daily Quasimodo resistance level (110.390) mentioned above. However, before higher prices are seen, traders would do well to prepare for a potential retracement (to collect buy orders) down to either the 4hr decision-point level at 109.300 (active buy orders likely set just above at 109.363), or failing that , a push down to the 109 level (active buy orders likely set just above at 109.056).
Buy/sell levels:
• Buy orders: 109.056 (Predicative stop-loss orders seen at: 108.799) 109.363 (Predicative stop-loss orders seen at: 109.069).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.