fxs_header_sponsor_anchor

News

USD/JPY technical lines drawn as trade uncertainty persists – Confluence Detector

Dollar/yen has been on the back foot amid doubts that the US and China are able to strike a trade deal. Looking at the charts, the technical battle lines are well-drawn.

The Technical Confluences Indicator is showing that USD/JPY is capped by a dense cluster of resistance at 108.75, which includes the Bollinger Band one-day Middle, the Simple Moving Average 100-4h, the SMA 5-4h, the SMA 100-15m, the SMA 100-1h, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-day, the Fibonacci 38.2% one-week, and more.

Higher up, another substantial cap awaits at 109.36, which is the convergence of the Pivot Point one-day Resistance 2, the PP 1w-R1, the previous monthly high, the previous weekly high, the BB 1d-Upper, and the PP 1m-R1.

Support awaits at 108.24, which is the confluence of the SMA 5-one-day, the PP 1w-S1, the PP 1d-S2, the Fibonacci 61.8% one-month, and the previous weekly low.

Further down, weak support is at 107.72, which is where the SMA 100-1d and the PP 1w-S2 converge. 

Here is how it looks on the tool:

 

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

Learn more about Technical Confluence

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.