Some really interesting P.A being seen on the USD/JPY!
Weekly gain/loss: - 75 pips
Weekly closing price: 112.14
Beginning with the weekly timeframe this morning, price looks to be on course to cross swords with a weekly support area drawn in at 111.44-110.10, which we believe will hold price. The reason for why simply comes from seeing the rather swift retest to the top edge of this zone following the break of this area back in late November 2016 (see black arrow).
Since mid-January, the daily candles have been consolidating between a daily resistance area carved from 115.62-114.60 and a daily demand base seen at 111.35-112.37. While this demand is located around the top edge of the above noted weekly support area, there is a strong possibility that it may experience a fakeout down to the daily broken Quasimodo line at 110.58. This line is beautifully positioned within the aforementioned weekly support area, and intersects with the decision point (see yellow box) area that was used to break through the weekly supply which, as we highlighted above, is now an acting support area.
Switching over to the H4 chart, we can see that the pair clipped a pocket of fresh bids around the 112 handle as price entered into the last few hours of trade on Friday, consequently forming a rather solid-looking H4 buying tail. Strengthening this number we have a H4 trendline support taken from the low 111.59 and a H4 AB=CD 127.7% Fib ext. at 111.96 drawn from the high 114.95.
Our suggestions: Given that 112 is also supported by a daily demand zone mentioned above at 111.35-112.37, further buying could be seen during Asia this morning. However, just below here sits the H4 mid-way support barrier at 111.50 that fuses with the H4 AB=CD symmetrical completion point at 111.42 (black arrows). To that end, both areas are worthy of attention.
For us personally, nevertheless, we will not be looking to buy from 112 since 111.50, alongside the H4 AB=CD symmetrical structure, also converges beautifully with the top edge of the above noted weekly support area at 111.44 and a H4 trendline support etched from the high 116.66!
Data points to consider: US durable goods orders at 1.30pm, US pending home sales at 3pm, FOMC member Kaplan speaks at 4pm GMT.
Levels to watch/live orders:
• Buys: 111.50 (pending order, stop loss: beyond the 28th Nov low at 111.35 (111.30)).
• Sells: Flat (stop loss: N/A).
Weekly closing price: 112.14
Beginning with the weekly timeframe this morning, price looks to be on course to cross swords with a weekly support area drawn in at 111.44-110.10, which we believe will hold price. The reason for why simply comes from seeing the rather swift retest to the top edge of this zone following the break of this area back in late November 2016 (see black arrow).
Since mid-January, the daily candles have been consolidating between a daily resistance area carved from 115.62-114.60 and a daily demand base seen at 111.35-112.37. While this demand is located around the top edge of the above noted weekly support area, there is a strong possibility that it may experience a fakeout down to the daily broken Quasimodo line at 110.58. This line is beautifully positioned within the aforementioned weekly support area, and intersects with the decision point (see yellow box) area that was used to break through the weekly supply which, as we highlighted above, is now an acting support area.
Switching over to the H4 chart, we can see that the pair clipped a pocket of fresh bids around the 112 handle as price entered into the last few hours of trade on Friday, consequently forming a rather solid-looking H4 buying tail. Strengthening this number we have a H4 trendline support taken from the low 111.59 and a H4 AB=CD 127.7% Fib ext. at 111.96 drawn from the high 114.95.
Our suggestions: Given that 112 is also supported by a daily demand zone mentioned above at 111.35-112.37, further buying could be seen during Asia this morning. However, just below here sits the H4 mid-way support barrier at 111.50 that fuses with the H4 AB=CD symmetrical completion point at 111.42 (black arrows). To that end, both areas are worthy of attention.
For us personally, nevertheless, we will not be looking to buy from 112 since 111.50, alongside the H4 AB=CD symmetrical structure, also converges beautifully with the top edge of the above noted weekly support area at 111.44 and a H4 trendline support etched from the high 116.66!
Data points to consider: US durable goods orders at 1.30pm, US pending home sales at 3pm, FOMC member Kaplan speaks at 4pm GMT.
Levels to watch/live orders:
• Buys: 111.50 (pending order, stop loss: beyond the 28th Nov low at 111.35 (111.30)).
• Sells: Flat (stop loss: N/A).
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