USD/JPY: Expecting a small correction at the 107 level
Weekly Timeframe: Follow-through buying is currently being seen on the USD/JPY after price broke above the weekly supply area at 105.432-104.065. From here, we see very little on this timeframe stopping price from hitting the heavy-weight weekly supply area at 110.652-108.123.
Daily Timeframe: Price is currently seen trading around the upper limit of the daily supply area at 106.946-105.083. A break above here could attract another heavy round of buying essentially pushing price up to the weekly supply area mentioned already at 110.652-108.123, since all we see above this daily supply area is consumed supply/sellers – just take a look at all those wicks (108.021/109.071/109.166/110.278), poetry in motion!
4hr Timeframe: The round number 106 proved to be a fantastic area to go long off of, unfortunately for us, there was no confirmation on this timeframe. Price is edging ever so closer to the round number 107, and while we are still expecting higher prices to come (as per the higher-timeframe analysis above), selling may be seen around this number, this will be very likely be traders covering their long positions, but nonetheless, it will possibly cause a small bearish correction within the clear up trend we’re all seeing.
Assuming sellers do come into the market around the 107 level, we’ll be looking to enter long around the 4hr demand area (106.030-106.241) at 106.288 (pending buy order set at this level).
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: 106.288 (Stop loss: 105.886 Take profit: Dependent on how price approaches). Price action confirmation levels: 105.377 (Stop loss: Dependent on price action after the level has been confirmed, Take profit level(s): Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.
Daily Timeframe: Price is currently seen trading around the upper limit of the daily supply area at 106.946-105.083. A break above here could attract another heavy round of buying essentially pushing price up to the weekly supply area mentioned already at 110.652-108.123, since all we see above this daily supply area is consumed supply/sellers – just take a look at all those wicks (108.021/109.071/109.166/110.278), poetry in motion!
4hr Timeframe: The round number 106 proved to be a fantastic area to go long off of, unfortunately for us, there was no confirmation on this timeframe. Price is edging ever so closer to the round number 107, and while we are still expecting higher prices to come (as per the higher-timeframe analysis above), selling may be seen around this number, this will be very likely be traders covering their long positions, but nonetheless, it will possibly cause a small bearish correction within the clear up trend we’re all seeing.
Assuming sellers do come into the market around the 107 level, we’ll be looking to enter long around the 4hr demand area (106.030-106.241) at 106.288 (pending buy order set at this level).
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: 106.288 (Stop loss: 105.886 Take profit: Dependent on how price approaches). Price action confirmation levels: 105.377 (Stop loss: Dependent on price action after the level has been confirmed, Take profit level(s): Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.
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