USD/JPY: Technical outlook and review.

FX:USDJPY   U.S. Dollar / Japanese Yen
Weekly Timeframe: From a technical standpoint, the USD/JPY pair has seen very little change over the past two weeks. And as such, buyers and sellers remain trading between a weekly Quasimodo resistance level coming in at 122.18 and a major weekly swap level at 115.50.

Daily Timeframe: At the time of writing, the daily timeframe shows that price is confined between a daily swap area coming in at 119.19-118.04 and a daily supply area at 121.83-120.66, which was actually a reaction to a longer-term daily supply area seen above at 122.61-121.54 (this area encapsulates the weekly Quasimodo resistance level mentioned above at 121.18).

4hr Timeframe: The USD, as you can see has recently sold off, breaching the 120.00 handle and trading into minor 4hr demand at 119.28-119.61. Risk/reward limitations restrict us from entering long here with potential resistance (which was prior support) looming just above at 120.00. In the event that further selling ensues from here and price visits a 4hr demand area seen just below at 118.83-119.07, there could be a nice opportunity to enter long using lower-timeframe confirmation around the 119.12 mark, since this area is located within the daily swap area mentioned above at 119.19-118.04. The reasoning behind us requiring lower-timeframe confirmation here is simply because of that large spike/tail seen on the 30/12/14. This move could have potentially consumed most of the buyers here, and thus decreased the chances of a reaction being seen.

With the above taken into consideration, we've decided to remain flat for the time being until more conducive price action is seen.

Current buy/sell levels:

• Buy orders: 119.12 (Predicative stop-loss orders seen at: 118.78).

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

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