Looking at the daily chart of the USD/JPY, one can clearly see renewed buying pressure formed from the Feb 11th low 110.96 on Wednesday, consequently printing a compact double-bottom formation. This ignited the buy-side of this market which saw price wrap up the week closing a few pips shy of weekly resistance (114.12) at 113.96, recording gains of over 140 pips.
As already established, price is nearing weekly resistance at 114.12. On the H4 chart, however, this level also boasts both a psychological resistance number at 114.00, a 78.6% Fibonacci level at 114.05 as well as a trendline taken from the high 115.19, consequently forming a tight sell zone to have on your watch list early on today. We would not recommend placing pending orders here due to the fact that a fakeout above the weekly hurdle may take place as it did back on the 16th February, 2016. Therefore, the best, and in our opinion, most logical way to approach this market today would be to carefully watch the lower timeframe action around 114.12. In the event the bulls continue to press forward, then we’ll shift our attention to the H4 supply seen at 115.19-114.85 for a lower timeframe confirmed sell trade, seeing as it was this area that helped facilitate the previous fakeout.
The first take-profit target, should one manage to enter short from the 114.12 region today would be the H4 demand below at 113.16-113.51, followed closely by another H4 demand at 112.56-112.82 and then psychological support 112.00.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 114.12 region Tentative – confirmation required (Stop loss: dependent on where one confirms this area). 115.19-114.85 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
As already established, price is nearing weekly resistance at 114.12. On the H4 chart, however, this level also boasts both a psychological resistance number at 114.00, a 78.6% Fibonacci level at 114.05 as well as a trendline taken from the high 115.19, consequently forming a tight sell zone to have on your watch list early on today. We would not recommend placing pending orders here due to the fact that a fakeout above the weekly hurdle may take place as it did back on the 16th February, 2016. Therefore, the best, and in our opinion, most logical way to approach this market today would be to carefully watch the lower timeframe action around 114.12. In the event the bulls continue to press forward, then we’ll shift our attention to the H4 supply seen at 115.19-114.85 for a lower timeframe confirmed sell trade, seeing as it was this area that helped facilitate the previous fakeout.
The first take-profit target, should one manage to enter short from the 114.12 region today would be the H4 demand below at 113.16-113.51, followed closely by another H4 demand at 112.56-112.82 and then psychological support 112.00.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 114.12 region Tentative – confirmation required (Stop loss: dependent on where one confirms this area). 115.19-114.85 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
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