If USD/JPY breaks 112.42, there is lot of room to run higher – Confluence Detector
|The USD/JPY climbed higher on US Dollar strength and reached the highest levels since January. What's next?
The Technical Confluences Indicator shows that the pair faces a cluster of resistance levels at 112.42. This is the convergence of the Bolinger band 15m-Upper, the Pivot Point one-month Resistance 2, the 4-h high, and more.
Above this level, 113.12 is worth mentioning, but we only see the Pivot Point one-day Resistance 2 resistance line there, not a heavy-weight.
Looking down, the pair has a lot of support. 111.89 is the confluence of the Bolinger Band one-hour Middle, the Fibonacci 23.6% one-day, and the Pivot Point one-week Resistance. It is closely followed by 111.71 which is the meeting point of the Simple Moving Average 100-15m and the Fibonacci 161.8% one-week. It is closely followed by 111.54 which is the potent Pivot Point one-week Resistance 2.
All in all, the USD/JPY has a lot of support and only a few resistance lines.
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.
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