USD/JPY Technical outlook and review.
Weekly Timeframe: The weekly timeframe shows that buying interest is being seen off of weekly resistance flip level at 105.432. Is this level really enough to put a halt on the selling that was recently seen out of the weekly supply area above at 110.625-108.123?
Daily Timeframe: We can see that the weekly resistance flip level mentioned above at 105.432 is clearly supported by a sturdy-looking daily decision-point demand area coming in at 104.674-105.244. As per this timeframe, it is very likely that price will continue to rally higher until at least price reaches the daily decision-point supply area at 107.486-106.661 before any further selling is seen.
4hr Timeframe: The 4hr timeframe shows some very interesting price action, and a possible buying opportunity. Price has consumed the small 4hr decision-point supply area seen at 106.391-106.196 (marked with a blue arrow), and with that, likely stopped out a ton of sellers in the process. What this means to us is that price is now free to trade up to at least the 106.747 level.
Be that as it may, we feel there is a good chance that price will likely see a retracement down towards a small 4hr Quasimodo support level seen at 105.673, and as such, this could prove to be a beautiful low-risk buying opportunity targeting the 106.747 level. The reason for the target being quite small for this trade is simply because the daily timeframe shows oncoming supply around the 107.486-106.661 area as already mentioned above.
Buy/sell levels:
• Buy orders: 105.708 (Predicative stop-loss orders seen at: 105.407).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: We can see that the weekly resistance flip level mentioned above at 105.432 is clearly supported by a sturdy-looking daily decision-point demand area coming in at 104.674-105.244. As per this timeframe, it is very likely that price will continue to rally higher until at least price reaches the daily decision-point supply area at 107.486-106.661 before any further selling is seen.
4hr Timeframe: The 4hr timeframe shows some very interesting price action, and a possible buying opportunity. Price has consumed the small 4hr decision-point supply area seen at 106.391-106.196 (marked with a blue arrow), and with that, likely stopped out a ton of sellers in the process. What this means to us is that price is now free to trade up to at least the 106.747 level.
Be that as it may, we feel there is a good chance that price will likely see a retracement down towards a small 4hr Quasimodo support level seen at 105.673, and as such, this could prove to be a beautiful low-risk buying opportunity targeting the 106.747 level. The reason for the target being quite small for this trade is simply because the daily timeframe shows oncoming supply around the 107.486-106.661 area as already mentioned above.
Buy/sell levels:
• Buy orders: 105.708 (Predicative stop-loss orders seen at: 105.407).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
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