USD/JPY: Technical outlook and review.
Weekly Timeframe: The USD/JPY pair continues to hover just above a major weekly swap level coming in at 115.50.
Daily Timeframe: The daily timeframe picture reveals that the upward momentum seen from the daily demand area at 115.55-116.38 may be diminishing, as price begins to stall just below a daily supply area seen at 119.95-119.14.
4hr Timeframe: Recent movements on the 4hr timeframe show that price did indeed see a reaction around the 118.00 region consequently sending prices back down towards the 4hr demand area at 116.91-117.22. We were unfortunately unable to catch this move on the lower timeframes – well done to anyone that did! The market clearly likes this aforementioned 4hr demand area as price was seen rebounding strongly from here, taking out the118.00 handle and pushing into a weak-looking 4hr supply area coming in at 118.84-118.52.
With the weekly timeframe showing price hovering above major support, and the daily timeframe indicating that there is room to move north, we are naturally expecting the current 4hr supply area to be consumed and 119.00 to be tested. 119.00 could be a nice area to look for a ‘bounce trade’ as we would then be trading just below the aforementioned daily supply area. In addition to this, notice that just above 119.00 we have a nice-looking fresh 4hr ‘sell zone’ at 119.31-119.12. Pro money will likely see this as an opportunity to fake above 119.00 into this supply area, one can only imagine the amount of buy stops lurking just above this number. Dependent on your style of trading (and if price reaches 119.00 of course), we intend to wait for lower-timeframe selling confirmation around the 119.05 mark, as we mustn't forget where we are located on the weekly chart! (See above).
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 119.05 [Tentative] (Predicative stop-loss orders seen at: 119.38).
Daily Timeframe: The daily timeframe picture reveals that the upward momentum seen from the daily demand area at 115.55-116.38 may be diminishing, as price begins to stall just below a daily supply area seen at 119.95-119.14.
4hr Timeframe: Recent movements on the 4hr timeframe show that price did indeed see a reaction around the 118.00 region consequently sending prices back down towards the 4hr demand area at 116.91-117.22. We were unfortunately unable to catch this move on the lower timeframes – well done to anyone that did! The market clearly likes this aforementioned 4hr demand area as price was seen rebounding strongly from here, taking out the118.00 handle and pushing into a weak-looking 4hr supply area coming in at 118.84-118.52.
With the weekly timeframe showing price hovering above major support, and the daily timeframe indicating that there is room to move north, we are naturally expecting the current 4hr supply area to be consumed and 119.00 to be tested. 119.00 could be a nice area to look for a ‘bounce trade’ as we would then be trading just below the aforementioned daily supply area. In addition to this, notice that just above 119.00 we have a nice-looking fresh 4hr ‘sell zone’ at 119.31-119.12. Pro money will likely see this as an opportunity to fake above 119.00 into this supply area, one can only imagine the amount of buy stops lurking just above this number. Dependent on your style of trading (and if price reaches 119.00 of course), we intend to wait for lower-timeframe selling confirmation around the 119.05 mark, as we mustn't forget where we are located on the weekly chart! (See above).
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 119.05 [Tentative] (Predicative stop-loss orders seen at: 119.38).
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