Weekly view: For the past month or so, the buyers and sellers have been seen pulling for position within a weekly demand area coming in at 118.22-119.40. Should a move north be seen from here, keep an eye on the weekly Quasimodo above at 122.18.
Daily view: The rebound seen from daily support at 118.62 ( convergence from 115.55) extended higher yesterday. Further upside at this point will likely see prices challenge the daily Quasimodo at 120.35.
4hr view: The USD/JPY pair recently made a run at the swing high 119.73. This move likely flushed out a ton of buy stops and also trapped any breakout buyers, potentially clearing the path north up to 119.96.
Should this buying continue, watch for downward pressure to come into the market around the 119.96 mark, which, as you can see lines up nicely with the 120.00 handle. A bounce will likely be seen from here, how much of one is hard to tell at this point, since let’s not forget that price is trading from weekly and daily supportive structures at the moment (see above). Nonetheless, this is a level to keep an eye on for today.
In the event that prices sell off, our attention will then shift to the 4hr demand area at 119.12-119.30. Buying from here will effectively mean one is buying with the predominant trend which has support coming in from both the daily and weekly structures, but what it also means is you’ll be buying directly into monthly supply (see above). Therefore, lower timeframe confirmation and strict trade management is a MUST!
Current buy/sell orders:
• Buy orders: 119.12-119.30 (Predicative stop-loss orders seen at: 119.08).
• Sell orders: 119.96 (Predicative stop-loss orders seen at: dependent on where one confirms this level).