If this support holds, USD/JPY can run above 112.00 — Confluence Detector
The USD/JPY continued its upward march and flirted with 111.00 as indicators on both sides of the Pacific supported the move. What's next?
The Technical Confluences Indicator shows that a potential correction may find strong support around 110.73. This is a confluence of potent lines: the Fibonacci 23.6% one-day, the Pivot Point one-month Resistance 1, the Pivot Point one-week Resistance 2, and the Simple Moving Average 100-15m await the pair.
Further down, the next considerable cluster of support is around 110.10. This is the meeting point of the one-month high, the one-day high, the Pivot Point one-week Resistance 1, and the Simple moving Average 5-1d.
On the upside, there is a congestion of not-so-strong resistance levels around 111.02: the Bolinger Band 15m-Upper, the Bolinger Band 1h-Upper, and the 4h-High.
However, a more potent line of resistance waits only at 112.12: this is the Pivot Point one-month Resistance 2 which is accompanied by a few other levels.
This 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. This means 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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
