USD/JPY: Technical outlook and review.
4hr TF.
The higher-timeframe picture resembles the following:
• Weekly TF: price still remains trading between a long-term weekly R/S flip level at 101.206, and a weekly supply area above at 105.432-104.065.
• Daily TF: Buying pressure is currently being seen around the daily resistance level at 102.713, a break above here could happen soon since most of the sellers are likely already consumed by those three prominent spikes/wicks (103.082).
Price action on the 4hr timeframe is currently a mess in our opinion, we have no clear direction, as price seems to be compressing within a triangle formation (green lines), and this is certainly not something we would consider trading at the moment.
We are watching to price to break out north from here because of where we are currently located on the higher timeframes. Extra buying pressure will likely coming off of the weekly R/S flip level support at 101.206; meanwhile the daily resistance level at 102.713 appears set to break. We have set a P.A confirmation sell level (102.900) just below a 4hr decision- point level at 102.922 as this could be where price will trade to if we do indeed see a breakout north. However, we have learnt to expect the unexpected in these markets, a break below out of the triangle could see prices trading down to the round number 102, where we also have a P.A confirmation buy level waiting at 102.027. It will be interesting to see how this all unfolds!
Pending/P.A confirmation levels:
• Pending buy orders (Green line) are seen just above the 4hr demand area (101.187-101.276) at 101.282. A pending buy order has been placed here simply because we are trading relatively close to daily demand at 100.747-100.967 and also this 4hr area remains fresh and untouched for the time being.
• Pending buy orders (Green line) are seen just above the 4hr demand area (101.306-101.365) at 101.375. A pending buy order has been placed here simply because we are trading relatively close to daily demand at 100.747-100.967 and also this 4hr area remains fresh and untouched for the time being.
• P.A confirmation buy levels (Red line) are seen just above the round number 102 at 102.027. The reason behind setting a P.A confirmation buy level here, and not a pending buy order is simply because as explained many times over, these round number levels are sometimes subject to deep test/spikes, which consequently stops out countless traders, we do not want to be one of them, hence the need for confirmation here.
• No pending sell orders (Green line) are seen in the current market environment.
• P.A confirmation sell levels (Red line) are seen just below a 4hr decision-point level (102.922) at 102.900. The reason for setting a P.A confirmation sell level here is simply because price has already tested this area, meaning that supply could have already been consumed, hence the need to wait for confirmation.
• Areas to watch for buy orders: P.O: 101.282 (SL: 101.158 TP: Dependent on price approach) 101.375 (SL: 101.158 TP: Dependent on price approach). P.A.C: 102.027 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: 102.900 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
The higher-timeframe picture resembles the following:
• Weekly TF: price still remains trading between a long-term weekly R/S flip level at 101.206, and a weekly supply area above at 105.432-104.065.
• Daily TF: Buying pressure is currently being seen around the daily resistance level at 102.713, a break above here could happen soon since most of the sellers are likely already consumed by those three prominent spikes/wicks (103.082).
Price action on the 4hr timeframe is currently a mess in our opinion, we have no clear direction, as price seems to be compressing within a triangle formation (green lines), and this is certainly not something we would consider trading at the moment.
We are watching to price to break out north from here because of where we are currently located on the higher timeframes. Extra buying pressure will likely coming off of the weekly R/S flip level support at 101.206; meanwhile the daily resistance level at 102.713 appears set to break. We have set a P.A confirmation sell level (102.900) just below a 4hr decision- point level at 102.922 as this could be where price will trade to if we do indeed see a breakout north. However, we have learnt to expect the unexpected in these markets, a break below out of the triangle could see prices trading down to the round number 102, where we also have a P.A confirmation buy level waiting at 102.027. It will be interesting to see how this all unfolds!
Pending/P.A confirmation levels:
• Pending buy orders (Green line) are seen just above the 4hr demand area (101.187-101.276) at 101.282. A pending buy order has been placed here simply because we are trading relatively close to daily demand at 100.747-100.967 and also this 4hr area remains fresh and untouched for the time being.
• Pending buy orders (Green line) are seen just above the 4hr demand area (101.306-101.365) at 101.375. A pending buy order has been placed here simply because we are trading relatively close to daily demand at 100.747-100.967 and also this 4hr area remains fresh and untouched for the time being.
• P.A confirmation buy levels (Red line) are seen just above the round number 102 at 102.027. The reason behind setting a P.A confirmation buy level here, and not a pending buy order is simply because as explained many times over, these round number levels are sometimes subject to deep test/spikes, which consequently stops out countless traders, we do not want to be one of them, hence the need for confirmation here.
• No pending sell orders (Green line) are seen in the current market environment.
• P.A confirmation sell levels (Red line) are seen just below a 4hr decision-point level (102.922) at 102.900. The reason for setting a P.A confirmation sell level here is simply because price has already tested this area, meaning that supply could have already been consumed, hence the need to wait for confirmation.
• Areas to watch for buy orders: P.O: 101.282 (SL: 101.158 TP: Dependent on price approach) 101.375 (SL: 101.158 TP: Dependent on price approach). P.A.C: 102.027 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: 102.900 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
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