USD/JPY will find it hard to recover after the fall – Confluence Detector

Yohay Elam FXStreet

The USD/JPY fell on some dovish comments by Fed officials and also due to some concerns about trade. What's next?

The Technical Confluences Indicator faces tough resistance around 113.00, a level which is the convergence of the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-day, the Simple Moving Average 100-15m, the SMA 200-4h,

Further above, 113.30 is the confluence of the SMA 100-4h, Fibonacci 38.2% one-week, the SMA 200-15m, and the SMA 50-1h.

Looking down, support is at 112.67, which is the meeting point of the previous 4h-low, the Bollinger Band 15m-Lower, and the Fibonacci 38.2% one-month.

If USD/JPY loses 112.67, the next cushion is only at 112.16 where we see the Fibonacci 23.6% one-month and the Pivot Point one-month Support 1.

Here is how it looks on the tool:

USD JPY Technical Analysis November 19 2018

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

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.

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