USD/JPY path of least resistance is up, but not without hurdles – Confluence Detector
An upbeat atmosphere in markets sent the USD/JPY higher. While dark clouds are gathering around trade issues, the technical picture remains mostly positive for the pair.
The Technical Confluences Indicator shows that the dollar/yen has significant support at 111.72, which is the convergence of the Fibonacci 38.2% one-week and the Bolinger Band 4h-Middle.
Further down, 111.42 is an even more robust level as it is the meeting point of the Simple Moving Average 10-one-day, the Pivot Point one-day Support 3, the SMA 200-one-hour, the SMA 50-4h, the SMA 50-one-day, and the Fibonacci 61.8% one-week.
Looking up, we somewhat weaker but non-negligible resistance at 112.30 where we see the confluence of the Pivot Point one-month Resistance 1, the Bolinger Band 4h-Upper, the Pivot Point one-day Resistance 1, and the one-day high.
Should the pair break higher, we see noteworthy levels of resistance at 113.06 and 113.47.
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.
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.
