USD/JPY is well supported and has room to rally – Confluence Detector

USD/JPY was not in the limelight in a week that saw neverending dramas around Brexit. Nevertheless, dollar/yen seems to provide opportunities for traders.

The Technical Confluences Indicator shows that USD/JPY enjoys robust support around 111.60 which is the convergence of the Simple Moving Average 10-4h, the SMA 10-1d, the Fibonacci 38.2% one-day, the Bollinger Band 15min-Lower, the previous month's low, the Fibonacci 61.8% one-week, the previous 4h low, and more. 

Resistance awaits at 112.18 where the BB 1d-Upper meets the previous week's high. 

The next upside target is 112.65 where the Pivot Point one-day Resistance 3 and the Pivot Point one-week Resistance 2.converge.

Looking down, the next cushion is quite close. 111.31 is the confluence of the SMA 100-4h, the PP 1d-S1, the Fibonacci 38.2% one-week, and the SMA 5-1d. 

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.

Learn more about Technical Confluence