USD/JPY overbought, traders!
Amid a stronger US equity market and robust US Treasury yields, the USD/JPY enjoyed a relatively successful start to the week on Monday. Nudging its way through July’s opening level seen on the H4 timeframe at 110.65, traders have the 111 handle in view for a third time this month. Also on the radar this morning is the nearby H4 Quasimodo resistance levels at 111.06 and 111.08, along with a 161.8% H4 Fib ext. point at 111.08 (taken from the low 110.27), as well as the H4 RSI nearing overbought territory.
Aside from H4 structure, traders may also want to pencil in the long-term trend line resistance taken from the high 123.57 seen plotted on the weekly timeframe. Bolstering the weekly trend line resistance is a daily resistance area seen at 111.71-110.78, which happens to house a 61.8% daily Fib resistance value at 110.91 (green line – in play as we write) within its limits. Note that the next downside target on the daily scale does not come into view until we reach the 109.50ish mark.
Areas of consideration:
All three timeframes suggest further selling could be on the cards.
With that being so, the team has noted to watch for H4 price to challenge 111 (and its closely associated structures seen above – red zone) and chalk up a full or near-full-bodied bearish candle for a possible sell. Should this come to fruition, this market likely has sufficient gas to push for the 110.65 level (July’s opening base).
Today’s data points: Limited.
Aside from H4 structure, traders may also want to pencil in the long-term trend line resistance taken from the high 123.57 seen plotted on the weekly timeframe. Bolstering the weekly trend line resistance is a daily resistance area seen at 111.71-110.78, which happens to house a 61.8% daily Fib resistance value at 110.91 (green line – in play as we write) within its limits. Note that the next downside target on the daily scale does not come into view until we reach the 109.50ish mark.
Areas of consideration:
All three timeframes suggest further selling could be on the cards.
With that being so, the team has noted to watch for H4 price to challenge 111 (and its closely associated structures seen above – red zone) and chalk up a full or near-full-bodied bearish candle for a possible sell. Should this come to fruition, this market likely has sufficient gas to push for the 110.65 level (July’s opening base).
Today’s data points: Limited.
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