Daily view: From this angle, it appears the USD/JPY pair has begun chiseling out a consolidation zone between daily support seen at 118.62 (located deep within the aforementioned weekly demand area), and a daily Quasimodo coming in at 120.35. Current action shows price has just rebounded from the upper limits of this range, so for anyone considering buying this pair may want to note this down.
4hr view: Following Friday’s close above 120.22, the buyers attempted to rally higher during yesterday’s sessions, but, as you can see only managed to reach the mid-level number 120.50 region before aggressively selling off. The sell off from here took out the round number 120.00 and tested the 4hr demand area seen at 119.60-119.74. From where we’re standing, buying or selling in between these two areas is risky since longs are currently being pulled north from within weekly demand, and shorts are being pulled south from the daily Quasimodo (see above for levels) – a tug of war!
With all of the above in mind, should we see price close above and retest the 120.00 number today, our team would then begin looking for a confirmed long entry, targeting the 120.30 area to take partial profits – remember, at that point, you’d be trading in line with the weekly scale but going against daily resistance (see above). Conversely, if the sellers close prices below the aforementioned 4hr demand area, there sits potential support at the mid-level number 119.50. Therefore, shorting the break of the 4hr demand area could be a very risky move indeed, waiting for price to close below and retest 119.50 as resistance would be a far more conservative approach and one that we firmly support. Depending on if this happens, keep an eye on the as a close below 119.50 would place you relatively close the ascending daily extended from the low 115.55.
Our 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).