Possible shorting opps on USD/JPY...
USD/JPY:
Weekly Gain/Loss: +0.53%
Weekly Close: 113.79
Weekly perspective:
The US dollar made strong gains vs. its Japanese counterpart last week, lifting the pair into supply territory at 115.50-113.85. Note this supply has incredibly strong history dating as far back as May 2017. For that reason, traders may feel the need to pencil in the possibility of a pullback forming this week towards the 2018 yearly opening level at 112.65.
Daily perspective:
Before weekly price can reach 112.65, however, daily action highlights potential support residing around the 113.40 region. Failure to hold 113.40 will likely draw the limelight towards trend line support (etched from the low 109.77).
In addition to this, there’s a possibility the unit could still climb north towards Quasimodo resistance at 114.45 (sited within the aforementioned weekly supply).
H4 perspective:
A quick recap of Friday’s movement on the H4 timeframe shows price action failed to overcome its 114 handle, despite broad-based USD buying. Safe-haven flows favoured the Japanese yen as US equities probed for lower ground. While further selling is a possibility in the USD/JPY market, traders are reminded to include the AB=CD (blue arrows) bearish pattern that terminates around the 114.17ish region (127.2% Fib ext. point) this week.
Areas of consideration:
Keeping things simple, the technicals still show possible shorting opportunities around the 114.17 neighbourhood (red arrows): the H4 AB=CD completion point, in spite of the recent move lower from 114.
As there’s a risk of price overthrowing 114.17 for a move towards the daily Quasimodo resistance mentioned above at 114.45, traders are urged to consider waiting for additional bearish candlestick confirmation before pulling the trigger (entry/stop parameters can be defined by the candlestick structure). A H4 close back beneath 114 is also important. Ultimately the first take-profit target from here is seen at daily support drawn from 113.40.
Today’s data points: FOMC member Daly speaks; US banks are closed in observance of Veterans Day.
Weekly Gain/Loss: +0.53%
Weekly Close: 113.79
Weekly perspective:
The US dollar made strong gains vs. its Japanese counterpart last week, lifting the pair into supply territory at 115.50-113.85. Note this supply has incredibly strong history dating as far back as May 2017. For that reason, traders may feel the need to pencil in the possibility of a pullback forming this week towards the 2018 yearly opening level at 112.65.
Daily perspective:
Before weekly price can reach 112.65, however, daily action highlights potential support residing around the 113.40 region. Failure to hold 113.40 will likely draw the limelight towards trend line support (etched from the low 109.77).
In addition to this, there’s a possibility the unit could still climb north towards Quasimodo resistance at 114.45 (sited within the aforementioned weekly supply).
H4 perspective:
A quick recap of Friday’s movement on the H4 timeframe shows price action failed to overcome its 114 handle, despite broad-based USD buying. Safe-haven flows favoured the Japanese yen as US equities probed for lower ground. While further selling is a possibility in the USD/JPY market, traders are reminded to include the AB=CD (blue arrows) bearish pattern that terminates around the 114.17ish region (127.2% Fib ext. point) this week.
Areas of consideration:
Keeping things simple, the technicals still show possible shorting opportunities around the 114.17 neighbourhood (red arrows): the H4 AB=CD completion point, in spite of the recent move lower from 114.
As there’s a risk of price overthrowing 114.17 for a move towards the daily Quasimodo resistance mentioned above at 114.45, traders are urged to consider waiting for additional bearish candlestick confirmation before pulling the trigger (entry/stop parameters can be defined by the candlestick structure). A H4 close back beneath 114 is also important. Ultimately the first take-profit target from here is seen at daily support drawn from 113.40.
Today’s data points: FOMC member Daly speaks; US banks are closed in observance of Veterans Day.
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