USD/JPY enjoys strong support after topping 110 and may continue higher – Confluence Detector

Yohay Elam FXStreet

USD/JPY has surpassed the 110.00 level as the greenback's strength outweighed safe-haven flows. What levels should we watch out for?

The Technical Confluences Indicator shows that USD/JPY has massive support around 109.80 where a dense cluster of levels awaits it. That includes the Fibonacci 161.8% one-month, the Bollinger Band 4h-Middle, the Simple Moving Average 200-1h, the Fibonacci 38.2% one-week, the Fibonacci 61.8% one-day, the Pivot Point one-day Support 1 and more.

If it breaches this support region, the next significant support is at 109.09 where the Fibonacci 161.8% one-day and the PP 1m-S3 converge.

Its initial upside target is 110.51 to 110.68 region where we note the SMA 100-4h, the SMA 100-1d, the PP 1w-R1, the PP 1d-R2, and the PP 1m-S1.

Looking to higher ground, USD/JPY may target 111.42 where we note a confluence including the Fibonacci 61.8% one-month and the SMA 200-1d.

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.

Learn more about Technical Confluence

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.

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