USD/JPY well-anchored around 111.00 after the post-BOJ wobble – Confluence Detector

The USD/JPY jumped up and down as the Bank of Japan made changes to its policy, allowing flexibility on the yield curve and introducing forward guidance. However, moves may be limited. 

The Technical Confluences Indicator shows that an initial hurdle awaits at 111.21. It is the convergence of the 15m-high, the one-day high, the Fibonacci 61.8% one-week, and the Pivot Point Resistance 1. 

Further above, 111.56 is an even more significant cap with the confluence of the Pivot Point one-week Resistance 1, the PP one-month R1, the Bolinger Band one-day Middle, the PP one-day R3, and last week's high.

Looking down, support is not that far either. 110.64 is the meeting point of the Simple Moving Average 50-one-day, the Pivot Point one-day Support 3, last week's low, and the PP one-week S1. 

Below, 110.18 is the meeting point of the SMA 200-one-day, the PP one-week Support 2, and the Fibonacci 38.2% one-month, all potent lines.

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