The impact of Yellen’s testimony drove the USD/JPY skywards yesterday, reaching a high of 114.49 on the day. To make a long story short, this has brought H4 price up to a nearby area of H4 supply at 114.93-114.57, which we feel will likely hold price lower today. There are a number of technical aspects that support this view:
• A H4 trendline resistance etched from the high 115.62.
• December’s opening level at 114.68.
• A H4 AB=CD approach which (symmetrically) concludes just ahead of the H4 supply mentioned above.
• Bolstered by a daily resistance area at 115.62-114.60.
Our suggestions: In light of the above confluence, our team is looking to short at 114.71, with the stop set a few pips above the H4 AB=CD 161.8% ext. (114.96) and round number (115) at 115.03. Please ignore the bold red line as this our alert, nothing more.
Data points to consider: US CPI and US retail sales scheduled for release at 1.30pm, with another day of testimony from Fed Chair Janet Yellen at 3pm. FOMC member Harker speaks at 5.45pm GMT.
• A H4 trendline resistance etched from the high 115.62.
• December’s opening level at 114.68.
• A H4 AB=CD approach which (symmetrically) concludes just ahead of the H4 supply mentioned above.
• Bolstered by a daily resistance area at 115.62-114.60.
Our suggestions: In light of the above confluence, our team is looking to short at 114.71, with the stop set a few pips above the H4 AB=CD 161.8% ext. (114.96) and round number (115) at 115.03. Please ignore the bold red line as this our alert, nothing more.
Data points to consider: US CPI and US retail sales scheduled for release at 1.30pm, with another day of testimony from Fed Chair Janet Yellen at 3pm. FOMC member Harker speaks at 5.45pm GMT.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.