USD/JPY is well-supported but breaking above 110 will not be easy – Confluence Detector

USD/JPY dropped to lower ground following the dovish Fed decision but managed to recover. What levels should we watch in the wake of the new week?

The Technical Confluences Indicator shows that dollar/yen has significant support at 109.41 where we see a dense cluster of lines including the Simple Moving Average 50-4h, the SMA 200-1h, the Fibonacci 23.6% one-day, the SMA 10-one-day, the Bollinger Band 1h-Middle, and the SMA 200-4h. 

The next support line is close by at 109.25 we note another minefield of lines including the Fibonacci 38.2% one-day, the Fibonacci 61.8% one-week, the SMA 10-4h, and the SMA 5-one-day. 

Resistance is quite significant as well. The round number of 110 is also last month's high and where the Pivot Point one-week Resistance 1 hits the chart. 

If USD/JPY overcomes the hurdle, the next target is 110.50 where we see the convergence of the Fibonacci 161.8% one-week and the Pivot Point one-week Resistance 2.

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