USD/JPY faces a wall of resistance if it tries to recover – Confluence Detector

USD/JPY dropped below 110.00 as US bond yields dropped sharply amid unimpressive economic data. What's next? 

The Technical Confluences Indicator shows that the area between 109.77 to 110.00 is a dense cluster of substantial lines of resistance including the Bollinger Band 15min-Upper, the Fibonacci 38.2% one-week, the Fibonacci 38.2% one-day, the Fibonacci 161.8% one-month, the Simple Moving Average 10-1d, the SMA 200-1h, the Fibonacci 23.6% one-week, and the Pivot Point one-month Support 2.

If the currency pair manages to break higher, the next level to watch is close, at 110.22, where we see a convergence of lines including the SMA 100-4h, the BB 4h-Middle, and the previous high among others. 

Some support awaits at 109.48 where the confluence of the previous daily low, the Fibonacci 61.8% one-week, the BB 4h-Lower, and the BB 15min-Lower awaits.

The next cushion is 109.04 where the Pivot Point one-month S3 and the previous weekly low meet.

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