USD/JPY is down, but not out, with 110.05 providing significant support – Confluence Detector
|USD/JPY dropped amid a worsening global mood: there are more signs of a slowdown and trade talks between the US and China are not going anywhere fast. The yen is in high demand, but dollar/yen may be limited in its falls.
The Technical Confluences Indicator shows that USD/JPY has some support at 110.25 where we see the convergence of the Bollinger Band 4h-Lower, the Simple Moving Average 200-1h, the SMA 50-4h, and the SMA 50-1d.
The most significant cushion awaits at around 110.06 where we see the Pivot Point one-day Support 2, the Fibonacci 23.6% one-week, and last month's high, a potent mix.
Looking up, the pair faces some resistance at 110.56 where we see the confluence of the Pivot Point one-week Resistance 2 and the previous 4h high.
More importantly, 110.71 is a juncture including the SMA 100-15m, the BB 4h-Middle, and the Fibonacci 38.2% one-day.
All in all, the path of least resistance is to the upside.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.