Potential selling opportunity on the USD/JPY
In the later hours of US trading on Thursday, the USD/JPY pair printed a sharp recovery from the H4 mid-level support at 108.50, erasing daily losses and reaching a high of 109.70. The main driver behind yesterday’s buying, other than daily price trading from support at 108.78 and the US dollar index connecting with a monthly support at 88.50, was comments from US President trump regarding strength of the US dollar.
As you can see from the H4 timeframe, price is currently trading in the direction of the 110 handle. This number, alongside oncoming daily resistance at 110.21, will likely hinder upside. In addition to these two levels, we also see a H4 supply area formed at 110.54-110.25. We like this zone because it formed on the BREAK of a H4 Quasimodo support at 110.32 (blue line).
Market direction:
From current price, further buying is likely to be seen, at least until we reach the 110 handle. Between 110.54 and 110 is an area we believe active sellers will likely make an appearance.
An ideal sell signal, in our view, would be a H4 selling wick that penetrates through 110 and connects with the underside of the above noted H4 supply (see H4 chart). That way stop-loss orders above 110 would be filled and therefore provide liquidity to those wishing to sell from the H4 supply. One could look jump aboard following the close of the candle, with stops either placed above the candle’s wick or above the H4 supply itself. The first target objective from here can be set at 109.
Data points to consider: US advance GDP q/q, US core durable goods orders m/m at 1.30pm; BoJ Gov. Kuroda speaks at 2pm GMT.
Areas worthy of attention:
Supports: 108.50; 109 handle; 108.78.
Resistances: 110.54-110.25; 110 handle; 110.21.
As you can see from the H4 timeframe, price is currently trading in the direction of the 110 handle. This number, alongside oncoming daily resistance at 110.21, will likely hinder upside. In addition to these two levels, we also see a H4 supply area formed at 110.54-110.25. We like this zone because it formed on the BREAK of a H4 Quasimodo support at 110.32 (blue line).
Market direction:
From current price, further buying is likely to be seen, at least until we reach the 110 handle. Between 110.54 and 110 is an area we believe active sellers will likely make an appearance.
An ideal sell signal, in our view, would be a H4 selling wick that penetrates through 110 and connects with the underside of the above noted H4 supply (see H4 chart). That way stop-loss orders above 110 would be filled and therefore provide liquidity to those wishing to sell from the H4 supply. One could look jump aboard following the close of the candle, with stops either placed above the candle’s wick or above the H4 supply itself. The first target objective from here can be set at 109.
Data points to consider: US advance GDP q/q, US core durable goods orders m/m at 1.30pm; BoJ Gov. Kuroda speaks at 2pm GMT.
Areas worthy of attention:
Supports: 108.50; 109 handle; 108.78.
Resistances: 110.54-110.25; 110 handle; 110.21.
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。