(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern between 118.66/104.62. The month of March concluded by way of a long-legged doji candlestick pattern, ranging between 111.71/101.18, with extremes piercing the outer limits of the aforementioned descending triangle formation.
April was pretty uneventful, ranging between 109.38/106.35. May also trades flat, as of writing.
Areas outside of the noted pattern can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.
Daily timeframe:
Partially altered from previous analysis -
The US dollar snapped a two-day losing streak against the Japanese yen Thursday, bottoming ahead of demand at 105.70/106.66.
Further upside could be in the offing, targeting the 200-day simple moving average (SMA) at 108.23.
Directly above here, traders will also note the April 6 high at 109.38 as feasible resistance.
H4 timeframe:
Partially altered from previous analysis -
Support at 106.91, a level converging with a 50.0% ret level at 106.86 and trendline support (106.35), limited downside on Thursday.
Having seen 106.91 offer a ‘floor’, Friday will have traders watching supply at 108.10/107.79 to re-enter the fold. Note this area capped upside on a number of occasions since mid-April.
H1 timeframe:
Local supply at 107.18/107.11 hampered upside on a number of occasions over the past 24 hours, though gave in to upside pressure amid US trade on Thursday, also overturning the 100-period simple moving average at 107.17.
Research stated in recent analysis that a H1 close above supply at 107.18/107.11 could be enough to spark interest off H4 support at 106.91 and target H1 supply at 107.67/107.57.
Structures of Interest:
H1 demand at 107.18/107.11 (prior supply), as well as the converging 100-period SMA, may provide support if retested today, which could, technically speaking, be enough to entice further buying.
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