USD/JPY path of least resistance is down as the Emperor abdicates – Confluence Detector

USD/JPY is consolidating around the mid-111.00s, awaiting the Fed decision, the NFP, and other events. In Japan, the focus is on the abdication of Emperor Akihito which marks the beginning of a long holiday, thus implying thin liquidity. The path of least resistance is down.

The Technical Confluences Indicator shows that the pair is struggling around 111.35 which is the convergence of the Fibonacci 161.8% one-day, the Simple Moving Average 50-1d, the Pivot Point one-day Support 2, and the SMA 200-4h. 

The most substantial concentration of technical lines awaits above. At 111.78 we see a dense cluster including the SMA 100-4h, the SMA 100-1h, the Fibonacci 38.2% one-day, and the Fibonacci 38.2% one-week, among others.

The next cap is at 112.12 where we note the Pivot Point one-month Resistance 1, the previous monthly high, and the PP one-week Resistance 1. 

On the downside, weak support awaits at 111.15 which is a juncture including the Bollinger Band one-day Lower, the PP 1d-S3, and the PP 1w-S1.

Further down, 110.66 is another weak support line which consists of the SMA 100-1d and the Fibonacci 38.2% one-week.

Here is how it looks on the tool:

USD JPY technical confluence April 30 2019


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

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