ICmarkets

Interesting price action on the Yen...

FX:USDJPY   U.S. Dollar / Japanese Yen
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Weekly Timeframe: The weekly timeframe shows that price is currently trading around the upper limits of a weekly symmetrical triangle formation (121.83/117.43). A convincing close above this limit would likely encourage follow-through buying up to a weekly Quasimodo resistance level coming in at 122.18.

Daily Timeframe: Recent developments on the daily timeframe show price trading just below a daily resistance level seen at 120.45.This level, as far as we can see, remains a key obstacle to a move towards a daily supply area visible at 122.61-121.54, which, if you look back to the weekly chart, you’ll notice that this area encapsulates the aforementioned weekly Quasimodo support level .

4hr Timeframe: The 4hr timeframe shows that the USD/JPY pair rallied higher yesterday, consequently breaking above and retesting the 120.00 handle. However, as you can probably see, price is also trading directly below a 4hr supply area at 120.73-120.39, which surrounds the daily resistance level mentioned above at 120.45. It is not so much the 4hr supply area we’re looking at now, it is this daily level, since, if you remember from the daily timeframe analysis above, this barrier is potentially a key obstacle to price moving higher.

Our team has come to a general consensus that WAITING is the best position to have on this pair at the moment. Why is this? Well, if price closes above and retests the 120.45 daily swap level today, our team will, with lower timeframe confirmation, jump in long. In the event that price closes below and retests 120.00 as resistance however, short-term sells (with lower timeframe confirmation) down to the 4hr Quasimodo support level could very well be the path to take.

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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