Thoughts on the USD/JPY...
Weekly gain/loss: + 14 pips
Weekly closing price: 114.56
Although the USD/JPY ranged over 300 pips last week, the pair was little changed by the closing bell. This, as is evident from the weekly chart, formed a clear-cut weekly indecision candle. Weekly resistance levels we have our eye on this week are 116.08, followed closely by the 2017 yearly opening level at 116.97. As for weekly supports, the support area chiseled in at 111.44-110.10 appears to be next obvious downside target on this scale.
Turning our attention to the daily chart, there’s very little active supply seen on the horizon until the daily resistance hurdle at 118.20 comes into play. Our reasoning behind this thinking comes from seeing the daily wick marked with a green arrow at 116.87 that drove deep into daily supply marked with a red arrow at 117.53-116.00. This has likely consumed the majority of offers within this zone and thereby likely weakened the area. To the downside, we are watching the daily demand base fixed at 111.35-112.37 that’s shadowed closely by a daily broken Quasimodo line at 110.58.
Analyzing Friday’s sessions on the H4 chart shows that the pair failed to muster enough strength to sustain gains beyond the 115 handle. Trump’s inauguration and speech did little to upset the markets, causing price action to marginally selloff and wipe out December’s opening base at 114.68.
Our suggestions: With the understanding that the H4 candles remain below December’s opening level today, it is likely price will shake hands with the 114 handle. Now, how does one look to take advantage of this possible move? Check out the M15 timeframe (added below), see how there is a minor M15 trendline resistance taken from the low 114.53 that converges beautifully with the monthly level. This, for us at least, is enough confirmation to permit an entry here today. However, we’d strongly advise waiting for the markets to open first so you can assess weekend trading, before making a final decision.
Data points to consider: There are no scheduled high-impacting news events on the docket today relating to these two markets.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Dependent on where the market opens, a short from the underside of the December’s opening level at 114.68 could be something to consider (stop loss: ideally planted 3-5 pips above the M15 trendline resistance discussed above).
Weekly closing price: 114.56
Although the USD/JPY ranged over 300 pips last week, the pair was little changed by the closing bell. This, as is evident from the weekly chart, formed a clear-cut weekly indecision candle. Weekly resistance levels we have our eye on this week are 116.08, followed closely by the 2017 yearly opening level at 116.97. As for weekly supports, the support area chiseled in at 111.44-110.10 appears to be next obvious downside target on this scale.
Turning our attention to the daily chart, there’s very little active supply seen on the horizon until the daily resistance hurdle at 118.20 comes into play. Our reasoning behind this thinking comes from seeing the daily wick marked with a green arrow at 116.87 that drove deep into daily supply marked with a red arrow at 117.53-116.00. This has likely consumed the majority of offers within this zone and thereby likely weakened the area. To the downside, we are watching the daily demand base fixed at 111.35-112.37 that’s shadowed closely by a daily broken Quasimodo line at 110.58.
Analyzing Friday’s sessions on the H4 chart shows that the pair failed to muster enough strength to sustain gains beyond the 115 handle. Trump’s inauguration and speech did little to upset the markets, causing price action to marginally selloff and wipe out December’s opening base at 114.68.
Our suggestions: With the understanding that the H4 candles remain below December’s opening level today, it is likely price will shake hands with the 114 handle. Now, how does one look to take advantage of this possible move? Check out the M15 timeframe (added below), see how there is a minor M15 trendline resistance taken from the low 114.53 that converges beautifully with the monthly level. This, for us at least, is enough confirmation to permit an entry here today. However, we’d strongly advise waiting for the markets to open first so you can assess weekend trading, before making a final decision.
Data points to consider: There are no scheduled high-impacting news events on the docket today relating to these two markets.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Dependent on where the market opens, a short from the underside of the December’s opening level at 114.68 could be something to consider (stop loss: ideally planted 3-5 pips above the M15 trendline resistance discussed above).
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