Our take on the USD/JPY pair's recent movements

FX:USDJPY   U.S. Dollar / Japanese Yen
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Weekly timeframe perspective: At the time of writing, price is seen teasing a minor weekly decision-point demand area coming in at 118.22-119.40. If price can hold out above this zone, we then feel there’s a very good chance that the buyers will attack the weekly Quasimodo resistance level seen above at 122.18.

Daily timeframe perspective: From this angle, we can see that price recently closed below a small daily demand area coming in at 119.37-119.81. This move has likely cleared the runway south for further selling down to yet another very small daily demand area seen at 118.61-119.05, which, if you look back to the weekly chart, you’ll notice is located relatively deep within the aforementioned minor weekly decision-point demand area.

4hr timeframe perspective: Yesterday’s sessions saw the market eventually sell off from the 119.74 barrier. This move consequently broke below the 4hr trendline support (116.86), and hit a 4hr demand area at 119.06-119.27, which, as you can see, was clearly enough to support a counterattack back up to 119.74. We hope some of our readers took advantage of this move as it was a highlighted as an area of importance in our previous report.

Taking all of the above into consideration, we’re not overly concerned by what the daily timeframe is telling us at the moment, since the aforementioned 4hr demand area is defending any move lower for the time being. Therefore, today’s spotlight will be firmly focused on both 119.74 and 120.00. In between these two numbers, we see very little active supply – take note of the very prominent supply consumption wicks seen at: 119.89/119.88/119.86, so price should, upon breaking above 119.74, be effectively free to hit 120.00.

Ultimately, the team is looking for price to close above 120.00 as this would open up a whole new void for profit up to the 121.00 region, and possibly higher, since let’s not forget that we are trading around weekly demand at the moment (see above).

Current buy/sell orders:

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

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

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