106.70 H1 support could be a level worth featuring on watchlists
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been carving out a descending triangle pattern between 118.66/104.62.
April and May were pretty uneventful, with June also wrapping up indecisively in the shape of a neutral doji candlestick pattern.
Areas outside of the noted triangle can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Brought forward from previous analysis -
Demand at 105.70/106.66 remains in focus on the daily timeframe. Although a reasonably hardwearing zone since early May, buyers appear to be lacking spirit. The previous reaction on June 23, as you can see, failed to reach the 200-day simple moving average at 108.35 before rotating lower, emphasising buyer weakness.
Moves below current demand re-opens the risk of a return to support at 105.01.
H4 timeframe:
Brought forward from previous analysis -
Recent developments on the H4 timeframe reveal price movement to be carving out a consolidation between supply at 107.60/107.42 and demand coming in from 106.39/106.64.
Traders will also note the latter comes with a 161.8% Fib ext. level at 106.67 and is situated within the upper boundary of daily demand from 105.70/106.66.
Outside of the aforesaid range, peaks around 107.77 and the 108.09 level represent resistance, while through demand we can see support at 105.99.
H1 timeframe:
Trendline support (106.66) made an entrance heading into US trade Monday, as price movement whipsawed through the 100-period simple moving average. 107 support is located close by, while a turn higher may witness 107.50 call for attention. Additional support can also be found at 106.70.
Structures of Interest:
Partially altered from previous analysis -
Daily demand at 105.70/106.66 recently re-joined the fight, albeit echoing a fragile tone.
Supply at 107.60/107.42 and demand from 106.39/106.64 on the H4 are likely to remain on the radar, particularly the latter owing to the confluence it brings to the table. Therefore, 106.70 H1 support could be a level worth featuring on the watchlist, should we nudge past 107.
Alternatively, H1 buyers may favour 107 for a bounce on the basis we’ll likely trip sell-stop liquidity under current H1 trendline support.
Since kicking off 2017, USD/JPY has been carving out a descending triangle pattern between 118.66/104.62.
April and May were pretty uneventful, with June also wrapping up indecisively in the shape of a neutral doji candlestick pattern.
Areas outside of the noted triangle can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Brought forward from previous analysis -
Demand at 105.70/106.66 remains in focus on the daily timeframe. Although a reasonably hardwearing zone since early May, buyers appear to be lacking spirit. The previous reaction on June 23, as you can see, failed to reach the 200-day simple moving average at 108.35 before rotating lower, emphasising buyer weakness.
Moves below current demand re-opens the risk of a return to support at 105.01.
H4 timeframe:
Brought forward from previous analysis -
Recent developments on the H4 timeframe reveal price movement to be carving out a consolidation between supply at 107.60/107.42 and demand coming in from 106.39/106.64.
Traders will also note the latter comes with a 161.8% Fib ext. level at 106.67 and is situated within the upper boundary of daily demand from 105.70/106.66.
Outside of the aforesaid range, peaks around 107.77 and the 108.09 level represent resistance, while through demand we can see support at 105.99.
H1 timeframe:
Trendline support (106.66) made an entrance heading into US trade Monday, as price movement whipsawed through the 100-period simple moving average. 107 support is located close by, while a turn higher may witness 107.50 call for attention. Additional support can also be found at 106.70.
Structures of Interest:
Partially altered from previous analysis -
Daily demand at 105.70/106.66 recently re-joined the fight, albeit echoing a fragile tone.
Supply at 107.60/107.42 and demand from 106.39/106.64 on the H4 are likely to remain on the radar, particularly the latter owing to the confluence it brings to the table. Therefore, 106.70 H1 support could be a level worth featuring on the watchlist, should we nudge past 107.
Alternatively, H1 buyers may favour 107 for a bounce on the basis we’ll likely trip sell-stop liquidity under current H1 trendline support.