USD/JPY - Be on the look out for higher prices today

FX:USDJPY   U.S. Dollar / Japanese Yen
155 0
Weekly Timeframe: Last week saw the USD/JPY pair advance to a fresh high of 118.968 as price continued on its relentless march north. This move consequently spiked above a major weekly supply area coming in at 117.931-116.799. Was this spike a fakeout to gather liquidity for lower prices, or a continuation move for a rally higher? Let’s see what we can find on the lower timeframes.

Daily Timeframe: Current trading action on the daily timeframe shows that price is stalling after hitting a daily supply area coming in at 119.820-118.700, which is located just above the aforementioned weekly supply area. That being the case, for the current weekly spike to be a fakeout, follow-through selling would need to be seen from here, preferably closing below a daily decision-point demand area coming in at 115.297-116.095. On the other hand, if price trades higher and consumes the daily supply area, we would know with a high probability that prices will likely continue north.

4hr Timeframe: The 4hr timeframe shows that the buyers took overall control since from the open (117.874). This consequently saw prices close above 118 once again. In the event that the buyers can hold out above here (tentative buy orders are seen just above at 118.059) and close above 119, this could be an early sign of weakness within the aforementioned daily supply area, and also likely confirm that the weekly timeframe spike was indeed a continuation move.

It will be interesting to see how price action unfolds later on today.

Buy/sell levels:

• Buy orders: 118.059 (Predicative stop-loss orders seen at: 117.690).

• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

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