Fasten your seat belts, the USD/JPY may just take off soon

FX:USDJPY   U.S. Dollar / Japanese Yen
Weekly Timeframe: The weekly timeframe shows that price remains trading between a weekly Quasimodo resistance level coming in at 122.18, and a major weekly swap level seen at 115.50.

Daily Timeframe: Yesterday’s trading action shows that price pushed below a daily swap area seen at 119.19-118.04. This may encourage further selling down towards a minor daily support level visible at 117.22. It will be interesting to see what the 4hr timeframe has on offer.

4hr Timeframe: The 4hr timeframe shows that the 118.00 level has been well and truly consumed. In the event that the sellers can hold the market lower here, we see very little stopping price from continuing southbound into what we like to call a ‘hot point’, which essentially means a highly confluent area.

We have set a pending buy order at 117.35 within this ‘hot point’ for the following reasons:

1. Lower-limit support from the aforementioned descending channel .
2. Fresh 4hr decision-point demand area seen at 116.80-117.30.
3. 4hr Quasimodo support level at 117.43.
4. Psychological number 117.00
5. Trendline support from the low 113.15 – 04/11/14.
6. Minor daily support coming in at 117.22.

Targets for the trade: 117.94/118.63/118.97 (as per the blue arrows).

Current buy/sell levels:

• Buy orders: 117.35 (Predicative stop-loss orders seen at: 116.73).

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

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