ICmarkets

USD/JPY Weekly technical outlook and review.

FX:USDJPY   U.S. Dollar/Japanese Yen
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Weekly TF.

A long-term weekly S/R flip level at 101.206 is still holding price up nicely, with a close lower yet to be seen.

Daily TF.

Price is currently capped between daily resistance above at 102.713 and daily demand below at 101.747-100.967. This price action we see here is a zoomed-in view of what is going on, on the weekly timeframe . So, with that in mind, take a look below the aforementioned daily demand area, and you’ll see a beautiful-looking daily demand zone at 99.562-100.247. This daily demand area could be used to help facilitate a fakeout of the weekly S/R flip level (levels above) as there are very likely some heavy active buyers around this area. Conversely, a positive close above the daily resistance level at 102.713 could force prices to test daily supply above at 104.104-103.802 as there is nothing really stopping price (to the left) from reaching this area.

4hr TF.

In the last analysis it was reported that we had seen a positive close below the low 101.227, thus potentially clearing the path down towards the round number 101.000. Price never made it that far; it missed the round number by about five pips!
Now let’s not forget that we are trading around some heavy higher-timeframe demand (Weekly: 101.206, Daily: 100.747-100.967), so higher prices are naturally expected from this level. The prior decision point at 101.400-101.465 will likely push price back down to the round number 101.000. Why would we think price will decline on this timeframe when we are trading around higher-timeframe demand? Take a look at the low 101.057, demand was so strong around the round number 101.000 area, it could not even reach it. Pro money likely sees this as an opportunity to stop out uninformed traders. Think for one moment how many traders will be attempting to buy around the aforementioned low, placing their stops just below the round number (level above); it will likely be an unimaginable amount! So to gain the much-needed liquidity, pro money could possibly sell hard into this low and below the round number triggering all the stops (which are now sell orders) thus allowing them to push prices higher. This is only one scenario, which could very well happen early sometime this week.

Pending/P.A confirmation orders:

• Pending buy orders (Green line) are seen just above the round number 101.000 at 101.020. The reason for setting a pending buy order here is because we are currently trading around weekly and Daily demand areas (101.206…100.747-100.967). We would not normally set a pending order around psychological levels such as these, but since we are in a great higher –timeframe location it is worth             the risk (Weekly: 101.206 Daily demand: 100.747-100.967).
• No P.A confirmation buy orders (Red line) are seen in the current market environment.


• Pending sell orders (Green line) are seen just below supply (103.294-102.983) at 102.953. A pending sell order was set here due to this being an area where likely unfilled sell orders are.
• P.A confirmation sell orders (Red line) are seen just below supply (102-191-102.104) at 102.074. A P.A confirmation order was used here purely for the simple fact we are trading around a higher-timeframe weekly support level at 102.206 meaning we may see a small reaction, but nothing to write home about, hence the need for confirmation!

• Areas to watch for buy orders: P.O: 101.020 (SL: 100.786 TP: Dependent on price approach).P.A.C: No P.A confirmation buy orders are seen in the current market environment.

• Areas to watch for sell orders: P.O: 102.953 (SL: 103.317 TP: Dependent on price approach). P.A.C:102.074 (SL: 102.214 TP: Dependent on approaching price action after the level has been confirmed).

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