From a technical standpoint the USD/JPY pair has entered into a phase of consolidation fixed between the key figure 100 and the 101 handle. The 101 band is likely to remain a strong resistance with it having been a solid support on several occasions from the beginning of August. Nevertheless, the 100 hurdle is also proving to be a stubborn beast!
However, with higher-timeframe action seen rotating from the underside of weekly resistance at 100.61 yesterday, 100 will likely come under pressure once again today. A decisive H4 close below here followed by a strong retest would, at least in our book, confirm selling strength in this market and likely push the unit south to test H4 support at 99.15, which merges beautifully with a H4 channel support line drawn from the low 100.68 (sits above a daily support at 98.78 which is also positioned above weekly demand at 96.56-98.59).
Our suggestions: An ideal setup would be to witness a decisive close below 100 along with a retest and a lower timeframe sell signal, targeting the above noted H4 support.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: Watch for price to close below the 100 handle and then look to trade any retest seen thereafter (lower timeframe confirmation required).
However, with higher-timeframe action seen rotating from the underside of weekly resistance at 100.61 yesterday, 100 will likely come under pressure once again today. A decisive H4 close below here followed by a strong retest would, at least in our book, confirm selling strength in this market and likely push the unit south to test H4 support at 99.15, which merges beautifully with a H4 channel support line drawn from the low 100.68 (sits above a daily support at 98.78 which is also positioned above weekly demand at 96.56-98.59).
Our suggestions: An ideal setup would be to witness a decisive close below 100 along with a retest and a lower timeframe sell signal, targeting the above noted H4 support.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: Watch for price to close below the 100 handle and then look to trade any retest seen thereafter (lower timeframe confirmation required).
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